Working capital tactics give companies in China a lift

The importance of cash has declined says KPMG, but an efficient working capital structure remains a key focus.

“Cash is no longer king in the new age, the customer is king,” said Fergal Power, partner of cash management advisory services at KPMG China and Hong Kong, at November's EuroFinance cash, treasury and risk management conference in Shanghai.

According to KPMG’s global cash management survey of 300 chief financial officers and treasurers of global multinational companies this year, cash remains a priority. However, its perceived importance is decreasing as companies outperform their expectations. The report highlighted that improvements have been made with net working capital, but the majority of companies surveyed have no incentive packages linked to cashflow targets for employees.

Linda Zhang, China treasury manager at Honeywell in Shanghai,...

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