Publication date: Jul 2010
The Chinese authorities continue to open up the country’s banking and financial sectors to international business. One of the most significant milestones in recent months was the announcement of a trial plan to allow the conversion of foreign exchange into renminbi, in order for foreign investors in the Pudong New Area to be able to access the RMB private equity fund industry. This is a significant step forward for foreign investors, who were previously excluded from such ventures.Read more
Publication date: Apr 2010
Recent reports have shown that China’s industrial profit for Q1 2010 was more than double that recorded for the same period in 2009. According to the People’s Bank of China, the 102.6% increase in profits has largely come from growing domestic demand, with the steel and power sectors experiencing particularly high levels of growth. While the RMB690.8 billion ($101.2 billion) figure is impressive, analysts sounded a note of warning as the comparison base during Q1 2009 was a particularly low point for the global economy.
Publication date: Mar 2010
Today, China remains one of the fastest growing economies in the world. The country’s banks have topped global market capitalisation tables and are still growing, both domestically and internationally, despite the headwinds of the crisis. China has also started allowing trials of short selling stocks, which is another step towards bringing China’s financial practices in line with those seen across the globe. Nevertheless, China still has to achieve better transparency and disclosure in terms of credit risk, market risk and operational risk. These are difficulties that also resonate in the treasury community.
Publication date: Jan 2010
During 2009 we saw a great deal of change in China. At the beginning of the year the focus was very much on deteriorating economic conditions. In response, there were bold moves from policy makers with the implementation of large scale stimulus packages and an unprecedented number of interest rate cuts. As the year progressed, China’s GDP predictions were downgraded, but a few months later they were revised upwards as the economy continued to perform well. Towards the end of the year, China firmly took its place on the world stage, calling for the dollar to be replaced as the world’s reserve currency.
Publication date: Nov 2009
While China’s GDP growth reportedly accelerated to 7.9% in the second quarter of 2009, an improvement on the 6.1% growth seen in the first quarter, it is clear that challenges remain – particularly in the area of trade. As an export-driven economy, China’s trade levels are continuing to suffer in the context of the global downturn, with July 2009 figures reporting that the country’s exports had dropped 23% year-on-year.
Publication date: Aug 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.
Publication date: Jun 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.
Publication date: Apr 2009
Following China’s accession to the World Trade Organisation (WTO) in 2001, the country’s prominence in global trade has continued to grow. Despite the global downturn, China’s total foreign trade reached $2.55 trillion in 2008, according to the General Administration of Customs. Companies transacting in foreign currency are particularly exposed to the risks presented by exchange rate fluctuations and this became a particular consideration for companies operating in China in 2005, when the renminbi was unpegged from the US dollar.
Publication date: Feb 2009
In the first issue of Treasury Today in China for 2009, the deteriorating global economic conditions are necessarily a recurring theme, and in this issue’s News section we look at the RMB 4 trillion stimulus package announced by the Chinese government in November 2008. There has been a cluster of recent fiscal packages designed to kick-start economies in the US and Europe but, unlike these, China’s stimulus package is expected to be funded by state banks and state-owned companies, as well as by central and local governments. We look at how the package is unfolding.Read more
Publication date: Nov 2008
Despite the introduction of new antitrust laws on 1st August this year (which have caused some anxiety among large multinationals looking to expand into China), the Chinese government seems set to continue its reform and opening-up policy by supporting foreign companies to develop their businesses in China. Meanwhile, one of the biggest challenges facing treasurers of multinational companies already operating in China is the repatriation of company cash.Read more