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China central SOEs favor Hong Kong as overseas treasury hub
Central SOEs hold nearly 8 trillion yuan in overseas assets across more than 180 countries and regions, and the treasury consolidation aims to improve visibility and control over FX and cross-border financing.
China’s central state-owned enterprises are consolidating scattered overseas accounts into unified treasury hubs, with Hong Kong emerging as the preferred base as authorities tighten controls over state cash outflows, according to SCMP Economy.
The outlet cites data from the State-owned Assets Supervision and Administration Commission showing central SOEs hold nearly 8 trillion yuan in overseas assets across more than 180 countries and regions, spanning over 10,000 projects and entities.
SCMP Economy reports the push has been underway since 2022, when mainland authorities required central SOEs to build treasury systems with full visibility and tighter control, later extending the mandate to their overseas units.
Analysts quoted by the outlet say a coordinated treasury approach reduces duplicated investments and fragmented assets, helping central SOEs optimize returns and better manage geopolitical and operational risks, with Hong Kong favored for its international banking system, deep capital markets, offshore yuan pool, and close links to the mainland.