Improvement Research On Treasury Management Of Regional China Of Multi-national Company H

This thesis first introduces the history of treasury management and major concepts and models in this domain.By comparing and analyzing the difference between western developed capital market and the macro environment of China treasury situation, one can find that the treasury management methodologies in western developed capital market are not immediately suitable for China. It is a critical issue for executives to consider how to manage treasury in China.By analyzing the evolvement and current status of the treasury management in a multi-national company H (MNC H), the study reconfirms that it is not immediately suitable to copy global parent company's treasury management practices to China. The study further identifies three major issues for MNC H China treasury management:First, a single cash pooling method can not meet the needs to centralize all funds. Secondly, treasury risks are still existing under four centralized fund management. Thirdly, there are limited methods in treasury management. This study has provided an optimized solution customized for Chinese macroeconomic environment to solve the three issues. First, it is imperative to increase the executive understanding of treasury management both in regional headquarter and in different entities, and to improve the business knowledge training for finance and accounting teams. Secondly, to set up a financial capital management center in regional headquarter (building the seamless integration between commercial bank treasury management and regional group ERP management system) in order to realize the full function of regional headquarter treasury management; to leverage advanced financial derivatives to meet Chinese corporate actual risk management needs in overall optimization solution. Lastly, it is imperative to build a sophisticated internal control system that can fit China treasury management.