Working capital solutions pave the way for international business opportunities.
With expected weakening of the RMB against the CAD dollar in 2015, contracts settled in RMB will be more attractive to Chinese buyers than those denominated in either Canadian or U.S. currency.
Regulation across Asia, and beyond, is having a profound macro-level effect on corporate treasury activities. In parallel, the ongoing drive for efficiency is triggering some significant changes in the location and deployment of treasury and shared service centres. Mark Troutman, Regional Head of Sales of Global Payments and Cash Management for Asia-Pacific, and Yvonne Yiu, Acting Head of Global Payments and Cash Management for Asia-Pacific, at HSBC, discuss some of the most significant trends in the Asia-Pacific region from the perspective of corporate treasurers who are responding to them.
Although the consumer protection provisions of the Dodd-Frank Act and similar recent legislation in other countries focus on the retail market, by implication this also encompasses many Small and Medium-Sized Enterprises (SMEs). Furthermore, many of the new measures being put in place by financial institutions will in time percolate upwards to benefit larger corporates as well. Sathya Ram, Regional Head of Clearing and Foreign Currency Payment Products of Global Payments and Cash Management for Asia-Pacific at HSBC, explores some of the implications of the legislation in Asia for corporate treasury and finance functions.
The recent development of transaction transparency in the payment business has been the increased focus of local regulators and market participants in Asia. As Sathya Ram, Regional Head of Clearing and Foreign Currency Payment Products of Global Payments and Cash Management for Asia-Pacific at HSBC, explains, this has important implications for corporate treasuries, as well more general connotations for economic development across the region.
There has been considerable discussion about the implications for corporates regarding the implementation of measures relating to Basel III. Some have forecast diminished capacity for bank lending and increasing costs thereof. At the same time, as Thomas Schickler, Global Head of Liquidity and Investments at HSBC, explains, the real impact and even opportunity for a corporate treasury perspective depends upon both the individual bank and the extent of the treasury's engagement.
As both renminbi and foreign exchange deregulation progress in China, new opportunities for treasury management emerge, with both the State Administration of Foreign Exchange (SAFE) and the People’s Bank of China (PBOC) recently announcing important changes. Yet taking advantage of these opportunities is not always quite as straightforward as it seems, due to the different ways in which the two regulators concerned operate. Nicole Lin, Head of Product Management of Global Payments and Cash Management, HSBC China, outlines some of these differences and their practical implications for corporate treasurers.
Enabling Dover to deploy RMB across Asia
Despite the publicity surrounding the internationalisation of the renminbi (RMB), a significant number of corporations continue to postpone the development of their cash management strategy for Greater China. Typically, this is because treasurers and finance directors believe there are still many technological and infrastructure hurdles to make the process worthwhile. But as Lewis Sun, Head of Sales China, Global Payments and Cash Management at HSBC explains, this assumption is no longer correct and implementing such a strategy now can reap substantive dividends in terms of both local and global working capital efficiency.
As a champion of structural economic reforms, Ghana has long been regarded as a poster child for Africa’s rising success.
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