China National Aluminium Corporation (Chinalco) has opened a corporate treasury centre in Hong Kong to manage the state-owned company’s offshore funds and financial risks.
Enhanced Cross-border Renminbi Settlement and Risk Management
The new entity, Chinalco Treasury Management Co Ltd, will centralize the group’s offshore funds and handle offshore financing, exchange rate, and interest rate risk management, as well as integrated financial services. Chinalco CFO Xiao Xin pointed out that Hong Kong’s fourth-largest foreign exchange market, along with its developed channels for Renminbi financing and trade settlement, will help the group more effectively manage its global funds.
Promised Synergy
Chinalco aims to leverage Hong Kong’s pricing, clearing, financing, and warehousing networks, along with its own industrial strengths, to further establish commodity trading functions in the city. Director-General of Investment Promotion Alpha Lau expressed hope that Chinalco would use the treasury centre as a starting point to create more synergies.