Treasury Operations in China Increase Focus on Centralisation and Technology Advancements for Improved Control of Cash and Risk

Beijing, China - 23 March 2010

Matthew Chen, vice president and head of corporations for SunGard China, said, “In the coming year, many corporations in China will be taking steps to modernise their treasury operations by finding ways of promoting centralisation, achieving connectivity with overseas operations and establishing best practices for cash and risk management.”

A recent survey conducted by EuroFinance Research Services in collaboration with SunGard, finds that Chinese companies are expanding the role of the treasury to support overall company growth, preserve capital and manage risk. The report, Treasury’s future in China: Time to act?, illustrates the need for treasury departments in China to centralise and streamline treasury activities in order to help improve visibility, lower operating costs and extend resources.

Three Trends in China driving adoption of Treasury Technology:

• Internationalisation: large corporations in China are expanding internationally, where competitors already use modern treasury technology.

• Centralisation: corporate treasuries are no longer viewed as isolated departments, requiring integration of systems and processes that can facilitate improved management and visibility into cash flow, as well as offer better control over liquidity across the financial supply chain.

• Global Economic Uncertainty: economic uncertainties in North America and Europe are prompting companies in China to enhance risk mitigation when operating across borders.

Huang Xiaofeng, general manager, Treasury Department, CNOOC Limited, said, “At the end of 2008, we made the decision to centralise the treasury operation of CNOOC Limited. By improving automation through the treasury management system, we have reduced the need for staff to spend time on routine tasks, so they can be more profitably employed on skilled activities. It is easier to monitor the company’s cash, and management reporting can be produced more quickly and accurately.”

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