Treasury Today Country Profiles in association with Citi
Treasury Today China Issue 3 magazine cover Buy print copy button

July 2012

Editorial

treasurytoday in China

The 20th Century is often called the ‘American Century’, a term that hints at the political, economic and cultural global dominance of the United States over the past hundred years. Will a similar term be used for China in the 21st Century?

“While China may be playing it safe when it comes to the renminbi, there is no doubt that the Asian Tiger is still an exciting location to set up business. However the rapid development of some markets can be disconcerting for some treasurers.”

In this issue of Treasury Today we explore where the renminbi is heading next (China Focus). While many commentators expect a smooth road to full convertibility in the short to medium term, we look at the evidence and find that investors may have to wait longer than they had initially expected. True, there is no doubt the redback is on the rise. But its slow ascent is determined by the Chinese government. ‘Better safe than sorry,’ is the leading motto.

While China may be playing it safe when it comes to the renminbi, there is no doubt that the Asian Tiger is still an exciting location to set up business. However the rapid development of some markets can be disconcerting for some treasurers. As such, we take a look at cash management best practice in China, focusing on everything from the importance of maintaining transparent banking relationships to the rise in mobile payment usage (Treasury Practice).

But another core component of cash management is risk diversification. In this issue we investigate corporate bonds (Corporate View), a financial tool that is popular in the United States and Europe but still a developing market in China. As any business knows, too much dependence on bank lending can be stifling in times of crisis. By branching out into the debt capital markets, however, Chinese companies can gain an element of independence when it comes to funding. We offer a clear explanation of an increasingly popular financial tool.

Next in line is our Q&A section where we ask experts about a key topic in the Chinese economy. With the importance of trade and exports still paramount for economic growth, in this issue we tackle supply chain finance, a trade finance tool that continues to gain traction and momentum with Chinese businesses.

As always, we are interested to hear your thoughts, opinions and suggestions on the content of this issue. Are there any terms you would like to have explained? Or perhaps you have news to share? Contact the China team by email china@treasurytoday.com – or call us on +44 (0)13 0462 9014.

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.

If you would like to receive a complimentary copy of treasurytoday in China, visit our website treasurytoday.com/china or contact us by email or telephone as detailed above.