China Huadian Corporation Ltd (China Huadian) said today (2 January 2019) that its corporate treasury centre, China Huadian Overseas Asset Management Company Limited (Huadian Asset), is poised to report profits on the first year of opening, successfully utilizing the city’s status as an international financial centre for management of offshore capital and financing activities.
Back to news
Being the centre managing the group’s global capital and financing activities, Huadian Asset has set up effective Hong Kong and cross-border cash pooling channels; coordinated the group’s offshore financing activities; and managed the group’s cross-border capital since establishment here in March 2018. As of November 2018, assets managed by Huadian Asset topped RMB 4.7 billion.
The Chief Accountant of China Huadian, Mr Shao Guoyong, said, “Hong Kong is a global financial centre renowned for free market mechanism and sophisticated fund raising channels. The Hong Kong Special Administrative Region (HKSAR) Government has also recently introduced various tax incentives as well. We are making good use of these advantages to manage our group’s global capital flow, financing activities and the related risks via Hong Kong.”
He added, “The HKSAR Government including the Hong Kong Monetary Authority and Invest Hong Kong has offered great support in the establishment of our corporate treasury centre as well as helping other Central enterprises setting up presence in Hong Kong. In addition, the HKSAR Government has enacted law amendment to introduce tax incentives for qualified companies setting up corporate treasury centres. Our corporate treasury centre in Hong Kong has deep implication as being an integral part of our “Four Platforms One Centre” policy and an important pillar of Huadian’s global growth strategy serving as the bridgehead connecting the group with the rest of the world. We have also for the first time issued offshore bonds in Hong Kong, setting benchmarks for Central enterprise peers in terms of our bond quality, investor proportion and subscription rate and drawing favourable response from international investors. The year of 2018 saw a new page for Huadian’s operation in Hong Kong and we hope to continue to have support from and work closely with various stakeholders in order to embrace the Belt and Road Initiative.”
Associate Director-General of Investment Promotion, Dr Jimmy Chiang, said, “We are happy to see that China Huadian’s corporate treasury centre expanding their offshore financial services riding on Hong Kong’s various edges in this regard. No doubt, it has further strengthened the city’s status as an international centre for financial services and corporate treasury activities. We believe that China Huadian’s corporate treasury centre will continue to set example and benefit from Hong Kong platform in its ongoing global expansion.”
About China Huadian
China Huadian Corporation Ltd is a large-scale, state-owned power generation corporation formed at the end of 2002 as part of the national electricity system overhaul. It is wholly owned by the State and regulated by the State-owned Assets Supervision and Administration Commission of the State Council. Major business includes power generation, heat production and supply, development of primary energy related with electricity such as coal fuel and relevant technical service. For more information, please visit www.chd.com.cn.
InvestHK is the department of the Hong Kong Special Administrative Region Government responsible for attracting foreign direct investment and supporting overseas and Mainland businesses to set up or expand in Hong Kong. It provides free advice and customised services for overseas and Mainland companies. For more information, please visit www.investhk.gov.hk.