Standard Chartered Bank (Taiwan) has completed a renminbi cross-border two-way sweeping deal for Asia’s largest electronics distributor WPG Holdings in Shanghai Free Trade Zone (SFTZ).

 

With its networks in the Shanghai Free Trade Zone and Kunshan Free Trade Zone, the bank is able to provide its clients with comprehensive renminbi solutions. The renminbi cross-border two-way sweeping deal completed for WPG Holdings provides the client with a more efficient cash management solution.

 

WPG Holdings is the largest electronics distributor in Asia as well as the world’s third largest IC distributor with global presence. Its network in China can be found across Beijing, Shanghai, Suzhou and Guangdong.

 

WPG Holdings established a renminbi cross-border two-way sweeping pool as “pool header” with the aid of Standard Chartered that WPG Holdings can enjoy a more flexible cash flow between Taiwan and China, as well as centralized cash management and capital flow. They will also benefit from lower cash management cost and better application of capital under this mechanism. After the completion of the deal, WPG has remitted the first batch of capital via Standard Chartered Taiwan.

 

Renminbi cross-border two-way sweeping allows Taiwanese corporates better capital management among their cross-strait networks. With this mechanism, corporates can finance their subsidiary in China with capital needs via the allocation of capital coordinated within the group, instead of borrowing from banks which would incur interest cost. This helps save cost of financing and increase cash management efficiency.