Treasury Today Country Profiles in association with Citi
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July 2011

Editorial

treasurytoday in China

This issue of Treasury Today in China looks in depth at the burgeoning market for the renminbi. China’s currency comes in a complicated mix of varieties, each with its own acronym, regulatory environment, interest rate and forward curve. At a strategic level, most companies realise that they must regard China as a key market into which to import goods and services and as a key market from which to source goods and raw materials. For the corporate treasurer, this brings with it a host of issues:

  • What is the difference between onshore and offshore renminbi?

  • How can they access preferential onshore exchange rates for trade transactions?

  • With three or even four interest rate curves how should they go about funding and hedging their renminbi transactions?

In the next two issues, in association with Citi, we will provide an in-depth explanation of the intricacies of the various renminbi markets, providing a primer for those coming to the subject for the first time, but also delving deeper into the details of what is and is not available in terms of cash management, liquidity management, trade settlement, capital account transactions such as inward and outward direct investment, funding and risk management. These articles will become a comprehensive resource for any treasurer contemplating a closer relationship with Chinese banks and companies both on the mainland and offshore in Hong Kong and elsewhere.

Elsewhere in this issue we look at the steps treasurers should take when selecting a treasury management system with special reference to the Chinese market. We hear the views of Albert Wolfmayr, Regional Treasurer, Porsche Automotive GmbH, China, and learn how he manages his payments, receivables and funding on the Chinese mainland. We explain the importance of managing interest rate risk and look at the core tools available to corporate treasurers for this purpose. And we look at how one of the region’s largest and most sophisticated financial institutions, J.P. Morgan, sees developments in the treasury space from an Asian perspective.

Have your say…

We are always pleased to hear your comments and suggestions for the magazine. For example, do you have:

  • Any terms you would like explained?

  • News you have to share?

  • Suggestions on how the magazine can be further developed to meet your needs?

  • A good story you feel would interest your peers?

Contact the China team by email – china@treasurytoday.com – or call us on +44 (0)13 0462 9014.

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