The Research On Cash Pool Prctice By Regional Center Of Multinational Corporation In China

After the subprime mortgage crisis, both commercial practice and academic research put more focus on company cash flow again globally. Thus the cash management is specified higher priority by multinational corporations than ever before. Although China is less affected by the financial crisis, with the promotion of RMB internationalization process and in-depth reform of China’s foreign exchange management, many background changes and practical influence happened, which kicked off deeper consideration by regional centers of foreign and Chinese multinational corporations. They both aim to increase corporate value and reduce risk by actively adapting to changes and optimizing the treasury management.For daily operation, multinational corporations in China must handle the issues in two main dimensions:Cash flow in and out of China, RMB and foreign currencies. Meanwhile they should separate the transaction with intercompany from with third parties. All above targets need good treasury management tool, which as common practice is cash pool.This research concentrates on cash pool practice by regional center of multinational corporations in China. The research methods include case study and data analysis.Chapter1describes the background and intention of the research, summarizes the historic researches, and introduces the research method and the structure.Chapter2outlines the regional centers of foreign and Chinese multinational corporations. Its daily cash operations are classified as well.Chapter3is the summary of cash pool, which includes the concept, structure, cost and benefit. Chapter4is the case study of RMB cash pool practice in China.Chapter5extends the practice by considering cash pool with global vision base on China.Chapter6analyzes cash pool’s practical impact on business.Chapter7is the summary and outlook.