While recent liberalizations of the system and amendments to the law make it easier to operate a treasury in China, setting up a cash management centre on the Mainland is not a trouble-free game and it is unlikely that the country's entry into WTO at the end of the year will make it instantly more efficient. Many of the problems that FinanceAsia explored in an article on cash management in its February edition this year still exist.
A mainly paper-based system means there are still delays in payments and collections. Poor inter-bank communications make verifying transactions between counterparties difficult and all foreign exchange dealings are still closely monitored by the State Administration for Foreign...
