Issue Four 2009
In the latest quarterly update from the World Bank, predictions for China’s GDP growth in 2009 were revised upwards – from 6.5% to 7.2%. This revision was based on the RMB 4 trillion stimulus package designed by the Chinese authorities to mitigate the effects of the country’s slowing industry and export growth. The Chinese government’s fiscal policies were praised for keeping the economy moving at a respectable pace in the face of the crisis and this is illustrative of the country’s increasingly proactive approach to financial and regulatory reform as a whole. In this month’s China Focus article we look at how the Chinese corporate bond market has grown in popularity since substantial regulatory reforms took place in 2007. We also examine the benefits of corporate bonds for both issuers and investors.
Another treasury tool which is becoming increasingly popular in China is the SWIFT for Corporates offering. Providing a simple, fast and reliable means of accessing financial services in a multi-bank environment, SWIFT for Corporates is attracting great attention at a time when companies are looking to maximise efficiencies both internally and externally. In this issue’s Treasury Practice article we take a look at the connectivity options available to corporates together with the treasury drivers behind this multi-bank solution. We also discuss the key points to consider when migrating to SWIFT for Corporates.
Elsewhere, in this issue’s Question Answered we look at recent foreign exchange pilot schemes in China, such as the simplified remittance procedures on service type payments and the trial RMB quote and settlement in cross-border transactions measures. Our expert contributor also considers whether pilot schemes such as the Pudong Nine Measures will eventually be expanded to the rest of China, as has been the case with other successful pilot schemes in the past.