Financial Challenges for Chinese Companies "Going Global"

　　Liu Yang, Associate Professor of Finance at the University of Hong Kong and Director of the Master of Wealth Management program, stated at the forum that when companies enter the international capital market, they typically raise funds and establish operations in US dollars, then operate using local currencies, and finally settle in RMB at the headquarters. In this process, China's capital costs fluctuate with US dollar inflation, which is one risk; operating locally is also tied to the local economic cycle, which is another risk; at this stage, high US dollar interest rates, capital flow, and payments also pose risks.

　　He Zhijian, Head of the Product Services Department at Cross-Border Clearing Company, mentioned that since cross-border payments require intermediaries (i.e., banks) to complete, and different countries and regions involve different banks, the overall cycle and chain of cross-border payments for companies become lengthy. "There is an urgent need to improve the speed, accessibility, and transparency of cross-border payments while reducing their costs."

　　Li Mingkai, Senior Vice President of Airwallex, a corporate service provider, added that the cross-border financial challenges companies face when "going global" include regulatory compliance, as companies need to adapt to the diverse cultural and economic environments of different countries; on the other hand, companies must also consider adjustments in fund timeliness and costs amid global exchange rate fluctuations.