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.
Diversification Leads to Global Success for H2O Innovation
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.
Chartering a 747 jet was just the beginning for Cavalia, described as ‘equestrian ballet’
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.
The island’s commerce-friendly environment serves as a springboard for expansion into China
With a population of over 1.3 billion, it's not surprising that there are some sizeable Chinese metropolises with unfamiliar names.