Seminar on “Rebuilding Treasury Center to Enable Value-creating Treasury Management in the context of Globalized Operation” held in Beijing

On the afternoon of January 20, 2017, the seminar on treasury management themed “Rebuilding Treasury Center to Enable Value-creating Treasury Management in the context of Globalized Operation” was grandly held in Beijing Xinglong International Building. The seminar, co-sponsored by Deloitte NR Risk Advisory, Deloitte CBD and Deloitte NR Tax & Legal, invited over 20 leaders and representatives from well-known enterprises and business community such as China Development Bank, CRRC Finance Co., Ltd, China Railway Materials Commercial Corp., China Datang Overseas Investment Co., Ltd, Shougang Group Finance Co.,Ltd, AVIC Finance Co.,Ltd, Unicom Group Finance Company Limited, China Mobile Finance Co., Ltd, China Machinery Engineering Corporation, BAIC International Development Co., Ltd.to gather in Beijing. It focused on challenges and demands faced by corporates in treasury management under the New Normal, explored various opportunities in the current market, and introduced key success factors of building corporate treasury centers (CTCs).

The seminar was moderated by Deloitte NR RA leader Mr. Allan Xie, Risk Advisory Partner of Northern China, he delivered a welcoming speech to emphasize along with rapid development of the expanding enterprise scale and international business, "value creating" treasury management will be the future direction of enterprise development which worth further research. He also introduced seminar speakers to enterprise representatives.

Then Ms. Yu Yun, Deloitte Senior Financial and Treasury Management Partner, made a keynote speech. Ms. Samantha Tan, Deloitte Senior Tax Manager, and Ms. Su Xiaoran, Associate Director of Risk Advisory Financial Services Industry, also delivered speeches which focus on “Rebuilding Treasury Center to Enable Value-creating Treasury Management in the context of Globalized Operation”, “An Overview of CTC Policy and Application to Hong Kong Enterprises” and “Selecting Appropriate Partners to Drive Globalized Operation of CTCs”, speakers discussed deeply with participants on how to transform treasury management from ‘Capital Control’ to ‘Value Creation’ for a broader space of growth. 

Ms. Yu Yun started from the leading international practice of treasury management, discussing the problem of positioning financial center and analyzing the operation of the group's capital structure, financial risk, liquidity, investment and financing management, exchange rate and interest rate risks, risk exposure and other issues. In her speech, Ms. Yu Yun shared treasurer management experience and case study to analyze how to establish a financial center to enhance capital efficiency, risk control ability and to safegard its process in the funds management from 1.0 to 2.0 and 3.0 and create value for the company. Ms. Samantha Tan gave a detailed explanation to the audience on the applicability and specific connotations of the new IRD Rules and possible tax risks confronting CTC establishment, as well as Hong Kong's tax benefits for enterprises as per the new IRD Rules from the tax perspective comparing with other areas. In order to facilitate the globalized operation of CTCs, Ms. Su Xiaoran provided professional advice on certain hot issues including how to select appropriate partners.

Deloitte experts delivered a wonderful speech which evoked enthusiastic respons. BAIC international and AVIC corporate representatives consulted on the Hong Kong CTC in the tax laws and regulations; the leader from CRRC Finance Co., Ltd was especially interested on how to distinguish the control authority between financial companies and funds management division to better play the role of various departments. In view of the above problems, the Deloitte experts provided forward-looking and practical help for the guests. Especially for the location of the CTC, Ms. Yu Yun stressed the need to play its synergy as the following three platforms, namely, resource decision-making platform, high-end consulting & investment and financing platform and business operation platform.

Deloitte, as a professional service organization, will continue to keep commitment to its service philosophy, aiming at offering suggestions and insights and providing more targeted services. In addition, it will help various enterprises establish proper treasury management systems as well as finance sharing centres, and create real value within the group.

To enable more corporate leaders interested in this topic to communicate with Deloitte’s experts, we will hold similar seminars in Shenzhen and Shanghai in first half of 2017, to understand the challenges and demands faced by corporates in establishing Overseas Treasury Centre. Based on topics which cover global economy, transformation measures, treasury management, capital centralization and sharing, and CTC establishment, partners and senior directors of Deloitte will discuss further about risk management and control, tax issues and financial services, etc.