CRRC opens overseas treasury center in Hong Kong; eyes up to 70pc growth in Q1 net profit

The overseas treasury center of state-owned CRRC Corp Ltd (1766) has been opened in Hong Kong as the Chinese train manufacturer forecast a 50 to 70 percent growth in its net profit in the first quarter of 2024. 

During the opening ceremony, President Ma Yunshuang and Chief Financial Officer Li Zheng unveiled the plaque of the CRRC Overseas Treasury Centre in Hong Kong and also officially commenced its treasury system, putting it online to coordinate the management of overseas finances and businesses. 

CRRC is a listed company with world-class capabilities in product lines including high-speed trains, high-power locomotives, railway trucks, and urban transit vehicles. 

The company has exported its products to countries and regions across six continents, including Singapore, South Africa, Macedonia, Australia and Portugal. 

According to the Hong Kong Monetary Authority, CRRC designated CRRC Hong Kong Capital Management Corp Ltd (CRRC HK Capital) as its offshore corporate treasury center (CTC) to support and manage its offshore treasury activities. 

CRRC partnered with a Chinese bank with strong international presence in Hong Kong to build a three-layer cash pool structure. 

The first layer is the Hong Kong CTC; the second layer consists of the offshore subsidiaries’ accounts in Hong Kong; and the third layer comprises the offshore subsidiaries’ accounts in their local regions. 

Earlier records show that Hong Kong is currently handling slightly over 70 percent of global trade settlement conducted in Renminbi (RMB), indicating the Chinese currency’s internationalization.