In the pursuit of developing globally competitive enterprises and advanced financial management systems, treasury management has emerged as a critical focal point. Recognizing its strategic importance, China’s State-owned Assets Supervision and Administration Commission (SASAC) mandated in January 2022 that central enterprises accelerate the construction of modern treasury systems. This initiative aims to restructure internal financial resource management, enhance capital efficiency, and deepen the integration of business and finance. By fostering innovation in organizational management, the treasury system serves as a cornerstone for cultivating world-class enterprises.
From Traditional Funds to Holistic Financial Resource Management
The evolution of treasury management has shifted from conventional cash flow oversight to a comprehensive approach centered on value creation. Modern treasury systems now manage two key categories: working capital (cash balances, receivables, payables) and financial resources (bills, credit lines, bonds, and digital instruments like e-credit certificates). While working capital is typically managed internally through financial subsidiaries, external financial institutions often collaborate on broader financial resource optimization. The convergence of these systems relies on digital integration—interconnected platforms that enable precise, data-driven management.
Financing Management: The Engine of Efficiency in Treasury Systems
Financing management lies at the heart of treasury systems, enabling enterprise groups to harmonize domestic and international capital allocation while leveraging economies of scale to secure cost-effective external financing and boost resource efficiency. To achieve objectives such as cost reduction, structural optimization, and risk mitigation, businesses must prioritize resource integration, operational control, risk prevention, and value enhancement, forming a closed-loop mechanism that ensures dynamic coordination of financial resources. A prime example is China National Chemical Corporation’s strategic approach, which emphasizes unified financial partnerships through bank classification management and strategic alliances to optimize credit resources.
The company also strengthens ties between financial platforms and core business operations to deepen industrial-financial integration while diversifying financing channels with graded approval mechanisms and market-based interest rate bidding for cost efficiency and oversight.
Additionally, it enhances bill management by digitizing the entire lifecycle—from issuance to redemption—with real-time risk monitoring. Supply chain finance innovation further supports this framework by utilizing upstream-downstream data to create a group-wide financial service platform. Rigorous risk control is applied to financial products through risk-level classification and strict monitoring protocols, while foreign exchange risk management is standardized via centralized digital tracking of derivatives contracts and assets. Together, these strategies exemplify a comprehensive and agile financing management system.
A Modern Treasury for a Modern Economy
Constructing a treasury system with Chinese characteristics is not merely a financial upgrade—it is a strategic imperative for enterprises navigating the complexities of a digital economy. By integrating global best practices with localized solutions, China’s treasury frameworks are poised to drive sustainable growth, risk resilience, and global competitiveness. As enterprises like China National Chemical Corporation demonstrate, the future of financial management lies in intelligent, interconnected systems that turn treasury operations into engines of long-term value.
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