Cash & Liquidity ManagementCash ManagementCash Management RegionalDeutsche Bank Selected for Safe Beijing Foreign Currency Centralised Management Pilot

Deutsche Bank Selected for Safe Beijing Foreign Currency Centralised Management Pilot

Deutsche Bank has been selected as a qualified bank to provide foreign currency cross-border pooling, centralised payments and collections, as well as netting services to clients participating in the foreign currency centralised management pilot launched in Beijing by the State Administration of Foreign Exchange (SAFE).

SAFE Bejing’s pilot enables corporates to better manage their liquidity by allowing them to move their foreign currency from their onshore to their offshore liquidity pool through designated intracompany accounts within a pre-determined quota. The pilot also allows for netting of intracompany transfers related to cross-border trade of goods.

Deutsche Bank said its client Datang Telecom Technology & Industry Group (Datang Telecom) has been approved to participate in the pilot, with its subsidiary Datang Telecom Group Finance centrally managing the pilot programme for the group.

Headquartered in Beijing, Datang Telecom is a state-owned enterprise specialising in information communication technology. Its products and services portfolio ranges from wireless mobile telecommunications, integrated circuit design and manufacturing, to information security. From September 2013, Deutsche Bank will provide Datang Telecom with cash management services allowed under the pilot, thereby helping the company to increase the capital efficiency of its participating entities.

Yinqiang Wu, general manager of Datang Telecom Group Finance, said: “SAFE Beijing’s foreign currency centralised management pilot will be very beneficial to us from a liquidity management perspective. For example, by being able to use the cash pooling technique, we will be able to optimise our foreign currency treasury management, which in turn can also help us to reduce the cost of capital.”

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