CXC Report on Corporate Treasury & Banking in China

The latest CompleXCountries (CXC) report on Corporate Treasury & Banking in China has now been published. It adds to a growing archive of corporate treasury knowledge relating to China - you can browse 18 reports here - all sourced from detailed confidential peer discussions between the treasurers of multinational companies with operations in China - the report - which is available here -  includes approaches and experiences with:

• Regulatory environment and regulatory uncertainty
• Engagement with regulators and regional variation
• Cross-border cash pooling frameworks (SAFE and PBOC)
• Cash repatriation methods (dividends, pooling, intercompany loans)
• Trapped cash and liquidity management
• Use and limitations of cross-border and back-to-back loans
• Decisions not to implement pooling and alternative structures (notional pooling)
• Relationships with local Chinese banks versus international banks
• Service quality and challenges with Chinese banks
• Role and performance of international banks
• Domestic cash pooling and cash reporting
• FX management, interest rates, and bank competition
• Onshore (CNY) versus offshore (CNH) renminbi markets
• Short-term investments 
• Funding structures (equity, intercompany loans, onshore bank loans)
• Supplier financing programmes and associated regulatory/KYC issues

International banks discussed in the report include: HSBC, Standard Chartered, JP Morgan, Deutsche Bank, Mizuho, Commerzbank and Citi

Chinese Banks include ICBC &  Bank of China