2016 – No time for monkey business

Monday 8^th February 2016 will see the world’s most populous country celebrate Chinese New Year and welcome in the Year of the Monkey. People born under this sign of the zodiac are believed to be: smart, quick-witted, frank, optimistic, ambitious and adventurous.

ASEAN: the creation of a regional powerhouse

As our November/December issue hits your desks thoughts are turning to the completion of the ASEAN Economic Community (AEC), the deadline for which is set for 31^st December. Since its founding in 1967 the Association of Southeast Asian Nations (ASEAN) has aimed to foster economic growth, social progress and cultural development in the region; to promote regional peace and stability and to provide assistance to each other, amongst other aims.

We live in volatile times

As we head to Singapore for SIBOS 2015, the front pages of the financial press are still dominated by China’s stock market rout and the impact of the country’s decision, on 11^th August, to devalue the renminbi by 2%. The statistics paint a sorry picture: since June 2015, China’s equity markets have dropped by almost 40% and China’s foreign currency reserves shrunk by $93.9bn at the end of August – the largest monthly fall ever recorded.

Stabilising China’s stock markets

At the time of writing, investors across the globe are watching the Greek debt crisis unfold. Yet China is experiencing a crisis of its own, with the Shanghai and Shenzen Indices having lost almost a third of their value since the highs set on 12^th June this year.

A step in the right direction

All eyes are on the Association of Southeast Asian Nations (ASEAN) as the ten-member bloc continues to work towards the creation of a single market. Designed to allow a free flow of goods, services, and investments, the ASEAN Economic Community (AEC) should also allow companies based in ASEAN to secure better access to raw materials, and to leverage a freer flow of capital and labour. In fact, a report released by the International Labour Organisation (ILO) and the Asian Development Bank last year suggested that the AEC could create 14 million new jobs and see the region’s annual growth rise by 7.1% over the next decade.

Year of the Ram: economic impact

As the pivotal holiday in the world’s largest economy and most populous country, Chinese New Year has an increasingly large impact on corporates across the globe. Prompting the most significant mass migration of people on the planet, the Spring Festival leaves factories empty and sends ripples through supply chains the world over. It also leaves the financial markets quiet, not least because the majority of indices in the Asia region shut for at least a day to mark the event.

Mobilising the APAC markets

The ascent of mobile is arguably the greatest innovation that the payments industry has seen in recent memory. Nowhere does the mobile revolution hold more promise than in Asia. After all, the region accounts for over half of the world’s mobile devices. There is also a significant move towards m-commerce in APAC, with over 50% of all Asia-based online transactions in 2015 set to be made by mobile, according to Criteo.

Leveraging change

Throughout 2014, there have been a number of major economic, infrastructural and political developments in countries across the Asia-Pacific region. These changes have both challenged treasurers and created opportunities for innovation and efficiency.

Now that’s an option

In August the Chinese State Administration of Foreign Exchange (SAFE) relaxed the rules surrounding the use of options in the onshore market. The new rules allow domestic corporates to purchase renminbi-based swaps and options – increasing the range of risk management tools at their disposal.

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