From the November 2008 issue of Treasury & Risk magazine

Gold AHA Award Winner in Liquidity

The big business story of the past decade, at least until the recent global financial meltdown, has been opportunities in China, and one of the biggest challenges for multinational corporations has been moving cash out of China due to evolving regulations. Now companies like Intel are working with the Chinese authorities and setting precedent for other multinational corporations. Such corporate efforts, along with China's legal reforms, soon may make it possible to do business in China with increased efficiency in treasury operations and greater freedom to manage liquidity.

A significant development is securing approval from Chinese authorities to allow cross-border lending from an entity in China to an overseas cash pooling entity. "Current regulations do not generally allow cross-border lending," says Robert Yenko, Intel's assistant treasurer. "As a result of working together with the Central Bank, Intel was able to lend funds in China to an offshore cash pooling entity and maximize the yields from those investments."


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