Editorial

Continuous improvement

This latest issue of Treasury Today Asia has much on the theme of making things better, and how to continually search for improvement and adapt to a changing world. The nature of commerce is changing and companies are continually finding new ways to improve ways of doing business. One model that has seen a rapid rise in recent years is the digital marketplace, which many companies are now adopting as a way of connecting with their customers. The feature on this topic looks at what is driving this trend, the benefits and what role treasury can play in supporting a marketplace.

Many of the big-name marketplaces have been born in China, and despite shifting economic winds, the country remains the major trading partner for the rest of the world. This has implications for the internationalisation of the renminbi, and in this issue we look at how the adoption of the offshore RMB – the CNH – is faring, and how Hong Kong has developed as an international financial centre.

Meanwhile, China’s banks continue to grapple with problems in the property sector which the government is taking steps to address. However, as one observer comments, any move China makes is often like a Rorschach test – the psychological inkblot exercise – where what one sees confirms what they are already thinking. The narrative about China is often that the banks are on a brink of a crisis, but, as our interviewees explain, this can be driven by a different perspective on the nature of Chinese banks.

Corporates have had to adapt and adjust to the shifting patterns with China, and have looked for continuous improvements in how they manage their supply chains. One of the beneficiaries of this shift has been India. We look at the prospects for the Indian economy and why there are many reasons for observers – and treasurers – to be optimistic about the years that lie ahead.

Also, treasurers are continually searching to improve one of their greatest challenges: trapped cash. In the Question Answered section, we ask a number of experts how they successfully navigated this.