The Research On The Centralized Management Of Foreign Exchange Fund Of International Companies In China

Over a long time, owing to the restriction of related policy, one company can't evaluate or to transfer accounts in foreign currency, whether there is a share-hold relationship between them or not, which posed an obstacle to bank when managing the finance of the group company in centralized manner.With the increasing open of foreign policies, China looses its control on foreign exchange fund gradually. In October 2005, Sate Administration of Foreign exchange fund (SAFE) officially put forward Nine Guidelines on the pilot reform program of finance management in multinational companies of Pudong New Area. Accordingly, Shanghai branch bureau of SAFE formed detail measures to carry out the reform. The banks and companies paid high tribute to this Nine Guidelines, which signal the three transformations in foreign exchange fund management, namely transformation of single company management to regulation of group companies, transformation of diversified regional management to centralized market management, transformation of approval management to credit management.Some measures, like allowing multinational companies to credit abroad using the RMB profit, open an off-land account in pilot bank and manage the foreign exchange fund by centralized management through loan of bank, help companies broaden their sources of foreign exchange fund and improve the efficiency in foreign exchange fund utilization, which quicken the pace of engaging into the international competition. On 5th October, the Commercial Bank of China put forward the foreign exchange fund cash pooling simultaneously in Beijing, Shanghai, Guangzhou, which is the first move in our country. This means multinational companies have the operation platform for centralized finance management of domestic subsidiary companies. Insiders thought that the successful launch of foreign exchange fund cash pooling bridged the foreign exchange fund flow between two areas and put an end to the era of long-term segmentation of domestic foreign exchange fund, at the same time declare the coming of new era of multi-currency cash.As a new mode of capital management, the theory model of centralized foreign exchange fund management sounds inviting. Can the company realize centralized foreign exchange fund management smoothly under existing foreign policies? What are the inflexible and soft requirements for centralized foreign exchange fund management? Can the country, the bank and the company reach the ideal "win-win"result? All of these call for our further research.This essay consists of five parts:The first one is the preface, including the background of the research, the purpose of the research, the meaning of the.research and the frame of the paper.The second one is documents and theories about the centralized management of exchange cash, including some definition, providing the foundation for the research.The third one is the problems in the centralized management of exchange cash, while it is pushed on .this part is divided into two. One is the research on theories to related and the process on the carrying out of the centralized management of exchange cash; the other is the problems exist in the companies about the centralized management of exchange cash.The fourth one is the suggestions on the centralized management of exchange cash, on the foundation of above, from two storey -micro and macro, giving the suggestions expecting do some help to the centralized management of exchange cash in china.The last one is the conclusion, giving a conclusion to the research.