Founded in 1987, Huawei is a leading global provider of information and communications

       
119
23 Cash and cash equivalents
(CNY million)
2020
2019
Cash on hand
6
5
Deposits with banks and other financial institutions
162,317
142,374
Highly liquid short-term investments
10,424
28,200
Deposits with third party merchants
151
105
Cash and cash equivalents in the summary  
consolidated statement of financial position
172,898
170,684
Reclassified as assets held for sale
152
386
Cash and cash equivalents in the summary  
consolidated statement of cash flows
173,050
171,070
Short-term investments included in cash and cash equivalents are highly liquid, readily convertible into known 
amounts of cash and subject to an insignificant risk of changes in value. As at December 31, 2020, these  
short-term investments comprised wealth management products of CNY7,200 million (2019: CNY26,200 million), 
reverse repurchase agreements with maturities of less than three months of nil (2019: CNY2,000 million) 
and money market funds of CNY3,224 million (2019: CNY1 thousand). The wealth management products are 
purchased from commercial banks with maturities of less than three months or with maturities of less than one 
year which can be redeemed at any time without penalty and are measured at amortised cost.
As at December 31, 2020, cash and cash equivalents of CNY963 million (2019: CNY488 million) were held in 
countries where exchange controls or other legal restrictions were in force.
As at December 31, 2020, the Group held cash equivalent to CNY1,555 million (2019: CNY2,940 million) in two 
multicurrency pooling arrangements to meet its day to day cash requirements and also to economically hedge 
foreign exchange rate movements arising from foreign currency cash flows. The facilities allow participating 
subsidiaries to place deposits and borrow funds from the counterparty banks in any freely convertible currency 
subject to the overall balance on the pools being positive.
As at December 31, 2020 and 2019, the Group did not hold any cash and cash equivalents pledged as collateral 
for liabilities or contingent liabilities.