In 2002, Sinochem finished the design of centralized management of overseas funds and implemented the design in Hong Kong on a trial basis. Since 2003 Sinochem launched the centralized management of global funds, good results have been achieved. Currently Sinochem has realized the centralized management of domestic and overseas funds.
In the one year of implementing the centralized management of overseas funds, Sinochem readjusted shortfalls and surplus and raised the efficiency of fund use. As a result, Sinochem’s demand for external loan decreases. The centralized fund management has also improved the liquidity of funds and Sinochem’s capacity to negotiate with banks to reduce charges.
The credit line is controlled by the overseas group, which strengthens the control of budget and helps guard against risks. The report of fund position forecast allows the management to understand the overall cash conditions of the company and offers rapid and accurate information to the headquarters. Meanwhile the centralized fund management and forecast of cash position also enhances the cash management of business groups.
At present the Treasury Department of the Headquarters is reviewing the experiences and deficiency of centralized management of overseas funds, trying to improve the operational processes, address new problems in a timely manner, increase the interaction of global funds and tap the potential of surplus funds.