OREANDA-NEWS. May 28, 2014. Citibank (China) Co., Ltd. ("Citi China") launched its foreign currency ("FCY") cross-border treasury center solution in the China (Shanghai) Pilot Free Trade Zone ("SFTZ"). This solution allows companies to achieve centralized fund management by integrating FCY cross-border pooling and payment netting.

Under the structure, the multinational company ("MNC") can use its SFTZ-registered entity as the leading vehicle to integrate the group's domestic cash pool and its global cash management structure. The MNC can also implement a payment netting structure by leveraging Citi's Netting System to include China into the global netting arrangement and settle the net amount with their offshore treasury center through netting.

With China becoming a significant contributor to the companies' global business, Citi's cross-border treasury center solution enables these companies to achieve true treasury management efficiency. As a result of the Foreign Exchange Management Reform in the SFTZ, companies can now achieve greater treasury management efficiencies. Already a key market player with implementing treasury center solutions globally, Citi continues the charge in China with the new mandate.

Yigen Pei, Country Head of Citi Transaction Services for China, said, "This is a new step under the financial reform that is unfolding in SFTZ. By leveraging our global platforms and local expertise, Citi paves the way in the breakthrough of cross-border treasury center solutions in China and strengthens our cooperation with both Chinese and foreign companies in the SFTZ. These mandates illustrate how international companies can leverage off the opportunities presented in the Foreign Exchange Management Reform to obtain global treasury efficiencies."

Sandip Patil, Head of Regional Liquidity Management Services, Asia Pacific, Citi, added, "Regionally, Citi has implemented best in class treasury and liquidity solutions for regional treasury centers and in house banks. With this experience behind us, and our on the ground expertise in China, Citi is well positioned to enable our clients in achieving the full automated treasury and liquidity management solutions."