HSBC Global Payments and Cash Management has been appointed to provide liquidity management services to financial services group CLSA Asia-Pacific Market’s operations across Asia.
CLSA operates a number of entities across different markets in Asia, with a central borrowing entity at a group office level in Hong Kong, which is its global headquarters. The management of cash was left to the individual entities, resulting in some entities operating with short positions requiring group funding ,while others ran positive cash positions. CLSA was looking to bridge the gap between their debit and credit positions across their businesses, enabling them to reduce borrowing costs significantly.
The regional structure implemented for CLSA across nine Asian markets is based on HSBC’s global liquidity solutions (GLS) platform. The regional structure comprises a number of multi-currency notional pools to consolidate and offset mismatching positions across CLSA’s business entities, combined with an interest enhancement cross-border virtual pooling arrangement to optimise the return on their other operational balances.
HSBC has also assisted CLSA to streamline and simplify their payment process and has installed a direct interface between CLSA’s enterprise resource planning (ERP) system and HSBC’s internet banking platform, HSBCnet.
“With the increasing intensity of focus by corporations and institutions on the optimisation and use of internal liquidity, visibility and control over their cash is becoming a top priority,” said John Laurens, Regional Head of Global Payments and Cash Management, HSBC Asia Pacific.
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