Citi Treasury and Trade Solutions
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Simplified account structure with flexibility
CNPC introduced an internal policy for its
global subsidiaries to strictly control the
number of partner banks and bank accounts
of its subsidiaries. Exceptional approval is
occasionally provided if there is no local
partner bank presence, or if special regulatory
requirements exist (i.e. for tax payments).
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Global visibility
With corporate-to-bank host-to-host
connection, CPF has full visibility of real
time (intraday) domestic cash position and
daily overseas cash position of all accounts.
CNPC at group level is managing subsidiaries
account information, payments and
collections, liquidity, financing and investment
plans and FX transactions through this
centralized system.
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Centralized liquidity management
CNPC centralized both onshore and offshore
liquidities, payments and collections, financing,
short term investment and risk management.
High percentage of its RMB and foreign
currencies are centralized through its global
cash pools established in Beijing, Hong Kong,
Singapore and Dubai via an in-house bank
structure using a zero balancing sweeping
structure.
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Enhanced risk management and control
ITS has enabled holistic, centralized
management of CNPC’s risk (liquidity,
operational, foreign exchange, interest rate,
and credit) to group level. FX settlements
are centralized to CPF as well as through ITS
platform. FX trading totaled billions in 2013
and saved up to USD100 million FX settlement
costs for the group.
CNPC continues to develop as a world-leading
energy player with superior cash management
operations. It has sought to gain a deep
understanding of best-in-class cash
management practices internationally and to
further explore the potential of its existing
offshore cash pool structure. It is also
proactively assessing the feasibility of adopting
SWIFT-enabled corporate-to-bank connection.
Looking ahead, CNPC plans to build a shared
services center (SSC) to cover all of its
subsidiaries, both domestically and abroad, by
leveraging the experience of other large
multinationals. The company believes the SSC
will become another important platform (in
addition to CPF) to deliver long-term benefits to
CNPC, including lower operating costs, improve
corporate efficiency and strength its global
competitiveness.
Looking ahead, CNPC plans to build a shared services center (SSC) to cover
all of its subsidiaries, both domestically and abroad, by leveraging the
experience of other large multinationals.
