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Global Cash Management Solution (Regional Management Center)

I. Company Background
A company has subsidiaries/branches in many countries/regions. Its Asian headquarters is in Hong Kong under which there are a number of branches. The company wishes to manage the accounts and cash reserves intensively in the Asian region from its HK headquarters, and to effectively hedge operational risk arising from exchange rate and interest rate.

II. Company Requirement
Set up in Hong Kong a regional centralized treasury management center covering Asia to check A/C and centralize regional treasury. All the Asian currencies are converted to international currency in order to hedge exchange rate risk.

III. Solution Design
Overall Thought
ICBC Asia is a subsidiary of ICBC in Hong Kong. Company regional center appoints ICBC Asia as the main service bank and opens master account for regional centralized treasury management in ICBC Asia. The objective is to manage the accounts from one location, as well as for cash pooling and allocation.

Account management
Company's regional management center can look up the balance and details of accounts in real-time.

Centralized treasury management
ICBC assists the company to include the accounts of the branches under the regional center into centralized treasury management, set up regional cash pool to manage company cash flow from one location.

Centralized payment management
Company's regional management center sends payment instruction, ICBC Asia system will automatically unpack, sort, ensuring the payment is complete and feeding back the status of processing payment instruction to regional center.

Investment and risk management
ICBC Asia, as the service bank for the master cash pooling account, assists regional treasury management center to manage the assets, looks for ways to preserve or add value to the assets, and designs tailored solution for the company to reduce risk.

Information support service
ICBC offers information services covering foreign exchange, taxation, treasury management in the area where the company is located, especially in areas where the company newly expanded.

IV. Result of Implementation
ICBC provides comprehensive global cash management service to the customer and meets the needs of the customer in account management, treasury management and control, centralized payment, risk management and investment services. ICBC addresses every issue and offers superior services.

Note: Information herein is for reference only. Refer to the announcements and regulations of local outlets for further details. ICBC reserves the final right of interpretation.

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