HSBC Launches Centralised Foreign Currency Management Solution in Shanghai Free Trade Zone

HSBC has launched a centralised foreign currency management solution for corporates in the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ) by delivering the new service to a German multinational corporation via its subsidiary in the zone.

The new solution allows the German company, which has established more than 20 subsidiaries in China, to set up a cross-border sweeping structure via its subsidiary in the Shanghai FTZ to deploy foreign currency funds more efficiently between its overseas and domestic affiliates. It also enables the company to use a number of other techniques including netting and centralised foreign currency exchange to enhance efficiency of working capital management. The solution provides greater convenience and transparency in cash management, thereby optimising the company’s cash-management structure.

Julia Wu, managing director of Banking in China for HSBC said: “Centralised foreign currency management solution is an effective way for multinationals in the Shanghai FTZ to manage their working capital. Through the new solution businesses are able to further enhance working capital efficiency and reduce foreign exchange exposure.

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