Issue Three 2009
The third issue of Treasury Today in China in 2009 comes as the repercussions of the global financial crisis continue to resound in the world economy. A recent World Bank report predicted that economic growth in East Asia will fall sharply to 5.3% in 2009 as wealthier nations cut back on imports from the region. The Chinese economy is unlikely to escape the slump, with growth expected to stall at 6.5% over the next year. However, there was a note of optimism in the report as the World Bank expects the effects of the RMB 4 trillion stimulus package to take hold sometime this year, potentially leading to the stabilisation of the region as a whole.
Many of the risks facing organisations have increased dramatically over the past 18 months. This issue’s China Focus article explores the concept of counterparty risk. Counterparty risk refers to the possibility that a counterparty to a transaction will default on its financial obligations, resulting in a late payment or even a non-payment.
While such risks are potentially very serious, assuming some level of counterparty risk is an essential aspect of most companies’ day-to-day activities. We explore the impact of counterparty risk in China and consider what treasurers can do to measure and control their overall exposure.
Despite the ongoing threat of redundancies in the financial industry, the treasury recruitment market continues to be competitive. In the last few years, attitudes towards recruitment have changed, with the recruitment process seen as one aspect of a wider drive to attract, manage and retain high-calibre individuals. In this issue’s Treasury Practice article we explore how an ongoing and holistic view of talent management can encourage employees to reach their full potential. We also suggest ways in which treasurers can take a more proactive approach to managing their own careers.
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