Choosing the ideal treasury location

For Western companies venturing into China, choosing the right place for their treasury headquarters is a major challenge and most will eventually narrow potential locations down to two Shanghai and Singapore.

It is clear that when dealing with multiple countries and multiple currencies in Asia-Pacific, setting up a treasury centre is a necessary step to achieve operational efficiency and improve risk and liquidity management. For the China focused, Shanghai seems the logical choice, however, there are many who ultimately choose to establish a base in Singapore.

Each company operates in a different manner and there are many factors to consider when choosing the right location. The business model of the company can be...