Transcript No Slide Title
140 Years of Cash Management in China
Brian Tsang Senior Vice President Payments and Cash Management HSBC China 19 April 2005
Agenda 1.
The first 130 Years 2.
The recent 10 years 3.
Year 2005 4.
Next 10 years and beyond
The First 130 Years…
Cash Management in China: Beforehand
Making and receiving payments – “Cash Management” was non existent Scattered, independent “clearings” “Approval” was mandatory Source of help and advice
The Recent 10 Years
Cash Management in China: The Recent 10 Years
Cash Management concept promoted by multinationals and foreign banks Vastly improved clearing infrastructure via State Banks and PBOC Revolutionised / evolutionised foreign exchange regulations Expanding business scope for foreign bank branches Trusted advisors from banks, legal/law firms and regulators Not without its challenges though…
Evolution of Cash Management in China Many corporates are now moving into Stages 2 & 3 STAGE 1 Basic Cash Mgmt.
Activities
Locally managed payments and receipts
Reporting and cash flow forecasting STAGE 2 Greater focus on Consolidation STAGE 3 Regional Cash Management STAGE 4 Global Treasury Activities
Day-to-day liquidity management
Consolidation of banking processes
Greater emphasis on controls
Centralized management of payments and collections
Increased focus on investments and structured liquidity mgmt.
Global file based payables & receivables mgmt
In-house bank Entity-based Deployment Regional & Global Strategy
2005: Time to Take Stock Now…
Cash Management in China: What Now?
Customer’s Business Processes A/R Management ERP/ Treasury Systems Our Clients Treasury A/P Management HSBCnet (Internet) HSBC Connect (Host-to-host) HSBC’s Integrated Cash Management Solutions mirror your business Receivables Management System Alliance Bank Network Information Management Integrated Receivables Solutions Integrated Delivery Channels management Liquidity Management Solutions Account Group Liquidity Solution Integrated Payments Solutions Group Entrust Loan Cheque Outsourcing Electronic payments Payments Advising process management and systems in China
HSBC and Our Partner Banks: Your One-stop Shop Single interface HSBCnet and HSBC Connect Connects via…
Nostro-a/c
Standing Instructions
Simplified Chinese enhanced SWIFT
Host-to-host link
Service Level Agreement Partner banks ABC BOC CCB ICBC BoComm Cash management solutions
HSBC and 3 rd party a/c reporting
Integrated Payments Solution – HSBC and 3 rd party a/s
Integrated Receivables Solution – nation wide
Integrated Liquidity Management – HSBC and 3 rd party a/c Combined strengths to meet your needs
Next 10 Years and Beyond…
Cash Management in China: Next 10 years and beyond Nation-wide RTGS clearing infrastructure connected to all local banks and foreign bank branches. Top internet infrastructure Efficient and effective inter-company liquidity management – inside China and cross-border Regulations rationalization, “cash trap” will be gone Converged business scope between foreign banks and local banks One-off cooperation >> business partnership >> strategic alliance >> systems / operations integration INNOVATIONS in GLOBAL cash management FROM CHINA!
HSBC’s Commitment in China
Largest foreign bank branch network Largest strategic investment in China China “old hands” with international expertise Global technology with local touch As a conduit between our customers and regulators Your Trusted Advisor For Cash Management in China
Best Cash Management Bank in China and Asia Best Overall Cross-border Cash Management Bank in Asia (2004) Best Cash Management Bank awards* (2004)
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Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, Singapore, Taiwan and Thailand * Domestic business/cross-border Best Cash Management Bank in Asia (2003-2004) Best Overall Bank for Cash Management in Asia (2003-2005) Best Bank for Liquidity/Working Capital Management in Asia (2003-2005) Best Provider of Outsourced Treasury Solutions in Asia (2003-2004) Best Bank for Payments and Collections in Asia (2003-2005) Best Bank for Risk Management in Asia (2005) Best Bank for Money Market Funds in Asia (2005) Best Cash Management Bank in Asia (2004-2005*) Best Bank for Payables and Receivables (2004-2005) Best Bank for Cash Management, Trade, Custody and DRs in Hong Kong (2005) Best Cash Manager – Asia (1999-2004)