Cash Management in China

Create a vendor selection project & run comparison reports
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.
23 February 2010
Hua Zhang

Abstract

Many Chinese companies are facing cash flow problems from the impact of the financial crisis. As such, it has become more and more crucial for companies to improve cash management and use funds efficiently.

In a new report, Cash Management in China: High Growth Market, Penetration of SMEs Still Low, Celent examines the rapidly developing cash management market China and trends in cash management services including liquidity management, cash pooling, investment services, and trade finance.

The cash management business has penetrated into 72% of bank deposits, but only 26% of corporate clients use cash management products, indicating a much higher penetration rate among large companies than among SMEs. In China, SMEs account for more than 60% of China’s GDP, and their annual growth rate has reached 46%. The overseas accounts receivable of SMEs have exceeded US$70 billion, and are growing by US$10 billion every year. These trends suggest that, in addition to the well-established demand from large corporates, there is a substantial and growing unmet need from SMEs for mature cash management services.

“Cash management in China is moving towards more integrated and globalized services, and increased application of information technology,” says Hua Zhang, analyst with Celent’s Asia Research Group and author of the report. “Chinese banks are developing more advanced and customized solutions to satisfy corporate needs, such as investment services and online cash management, and rolling these services out through branded campaigns with great fanfare.”

Subscription required

Access to this content requires a Celent research subscription.

Subscribers should sign in to access this research.

Insight details

Content Type
Reports
Focus
Industry Trends
Location
Asia-Pacific