Banking & Financial Consultancy

Efficiency • Professionalism • Cost- Saving

The Issue

You have decided to establish or expand your business in China. Before committing resources, you need to find out which banks to use, whether you can borrow from them and the procedures for profit repatriation. There are other related issues of interest e.g. how to protect the investment against political and foreign exchange risks.

Foreign Companies’ share of total loans granted in China is only 2.2%. Clearly the reason for the under-utilisation of financial resources in China is a lack of knowledge about the local banking system. Although more than 200 foreign banks have offices in China, none of them provide a full range of services.

The Solution - An Optimal Capital Structure for your business success

Fiducia’s Banking and Financial Consultancy is able to design a financing plan which balances the dual objectives of minimizing business risk and maximizing cheaper sources of capital funding. We can help you at every phase of the business cycle.

Phase	Our Assistance
Establishment of business	Evaluate funding needs according to company objectives SWOT analysis on local vs. foreign banks Recommend the number and usage of accounts Consider effects of government policy and forex control
Building of plant/office	Evaluate different sources of funding Assess banking relationships against your corporate policy Negotiate foreign or local currency loans
Operation of business	Compare payment and cash management systems Evaluate liquidity and debt servicing ability Working capital facilities and alternate sources of finance Managing currency and interest risks Repatriation of funds and dividends
Expansion of business	Analyse financing alternatives for new investment and acquisition Assist in the repatriation of capital through legal channels

The Benefits

Cost Efficient
By choosing the right bank and the right services unnecessary delays in the movement of funds and raising capital will be reduced

Enhance Profitability
Lower funding cost results in a higher return on investment

Minimize Currency Risk
Since RMB is not fully convertible, you would need to manage your liquidity to avoid a mismatch of income and expenditure

Long Term Perspective
Ensure that future financing needs will be met by building a sustained and trouble-free relationship with the bank(s) of your choice.

Project Experience

Our consultants have more than 20 years experience providing banking multinationals operating in China. Experience includes

Structured finance and export credits
Syndication loans and club deals
Working capital loans in foreign currencies and RMB
Negotiated largest bilateral local currency loan of RMB 3 billion
Adviser for financial institutions seeking cooperative partners

Our Competence

Well- established in China for 20 years
Strategically located offices in Beijing, Hong Kong, Shanghai and Shenzhen
Multinational and local consultants with manifold perspectives and ideas
Close relationships with government officials and local institutions
Extensive knowledge and project experiences