Guiyang State-owned company launches virtual cash pool

The Guiyang Investment Holding Group, a State-owned company in Guiyang, Guizhou province, launched a "virtual cash pool", a type of cash management system, on June 24.

Backed by the China Construction Bank, the system makes visible capital operations and real-time capital sharing possible inside the conglomerate, improves the efficiency of its financial operations, reduces its financing costs, and allows both capital sharing and individual operations of its member companies.

The operation of the system marks a significant step in the group's transformation from a traditional capital management model to a centralized management model.

The "virtual cash pool" is one of the two centralized capital management systems the group has launched, with the aim of strengthening the supervision of its revenue and expenditure.