Multinational Funds Management Practice In China

It is widely acknowledged that financial management plays an important role and stands on a strategic position in enterprise management. Among which, cash management is the core of financial management nowadays. An enterprise needs decision makers focus on cash management, and choose a management model and tool that will be suitable for the development of the enterprise in a long run.Multinational enterprises grow up gradually, and turn matured after China's reform and opening up. China has broken with the name of global factory. Instead, more and more multinational companies have put attentions on China, and they are willing to introduce advanced management experience into the investments in China. In terms of cash management, some multinational enterprises have introduced in Settlement Center or Group Treasury Center model to support the management in China. During practice, those enterprises have noticed that in the face of Chinese economic and financial environment, they need to make some adjustments based on the traditional financial management to optimize cash efficiency.This essay introduced how cash management models operate. In the mean time, it describes the barriers in implementing cash management models and suggested solutions.