Driving strategic values with Corporate Treasury Centre (CTC) in Hong Kong

June 2023

Through developments in treasury-related regulations and the market, we observe that corporates continuously have increasing needs and interests in setting up an offshore Corporate Treasury Centre (‘CTC’), and regulators also echo and call for such movement. In January 2022, the State-owned Assets Supervision and Administration Commission of the State Council (‘SASAC’) in China issued a Notice on Guiding Opinions which called for accelerated development of treasury management systems with corporate treasury functions to enhance cash management. The directive mandates all state-owned enterprises to deploy a centralised treasury system that provides visibility, control and traceability of all subsidiaries’ bank accounts and cash flows by the end of 2023. On the other hand, the COVID-19 crisis, global economic uncertainty and volatility in recent years also further underscore the importance of maintaining an effective corporate treasury function, enabling active financial risk management to facilitate corporate strategy. In response to the regulatory guidance and the macroeconomic environment, leading Chinese and overseas corporates are making significant strides towards treasury transformation, and rapidly establishing their CTCs in Hong Kong as part of their strategic business initiatives. 

Read our flyer for insights on the latest trends in the development of CTCs in Hong Kong and what are the key enablers of setting up an effective CTC.