Yangzijiang Financial units bag $1.9b-liquidity pool scheme 

It will be used to facilitate investments outside of China.

Jiangsu New Yangzi Commerce & Trading Co., Ltd and GaoHong International Limited, wholly-owned subsidiaries of Yangzijiang Financial Holding, secured a liquidity pool scheme of up to $1.9b (RMB10b) from the People’s Bank of China.

With the liquidity pool scheme, Yangzijiang Financial will be able to deploy its capital in and out of China in a cost-efficient manner through intra-group transfers. 

The scheme will likewise give Yangzijiang Financial maximise cash management returns through forex and interest rate differential between RMB and other currencies, such as USD or SGD, while it looks to redeploy its capital for other investments. 

Lastly, the scheme allows Yangzijiang Financial to consolidate and centralise its cash management to aid the efficient utilisation of its domestic and foreign funds in a tax-efficient manner.