Working capital comes into focus for Chinese companies

Chinese companies should think more about working capital management as interest rates rise.

Working capital comes into focus for Chinese companies

Western multinational companies MNCs might be struggling with tight liquidity, but many mainland Chinese companies have easier access to liquidity and have largely avoided such constraints. According to Fergal Power, a partner at KPMG China’s restructuring and cash management advisory, global studies show that cash is a tier-one priority for MNCs, but far less so in China given the greater availability of capital.

Accordingly, more financing from banks has led to reduced focus on working capital management...

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