Treasury & FX in China

Treasury & FX in China

Call date: 14th March  2019

This report covers two calls in which  members from Asia, Europe and the U.S shared their approaches to cash and treasury issues in China, including:

  • Entrustment loans
  • Cross border pooling
  • Invoicing from China in CNY
  • eBADS
  • Overdrafts

The key take aways from this call are listed below.

The call was chaired by Simon Jones

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Key Take Aways

Entrustment pools in China continue to be used extensively and increasingly in a tax effective manner. 

Cross border pooling is also working well in China for most clients using it, especially out of Shanghai, but differences (3 months or 6 months) exist on how often banks require the CNY to return to China before it can be swept out again. 

Invoicing for exports from China in CNY is speeding up the receipt of funds to bank accounts in China versus using FX currency. 

eBADs is being used more by corporates in China, but there continues to be many paper based BADs still used by the Chinese suppliers and banks and the terms vary significantly across banks

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