Treasury Verdict China

Nov 26th 2013 | Asia


Treasury Verdict is the electronic voting and panel discussion held at EuroFinance events worldwide. This report is based on the votes of corporate treasury professionals, bankers and other vendors and advisers who attended EuroFinance’s 11th annual conference on Cash, Treasury & Risk Management in China, held in Shanghai, on 26 and 27 November 2013.

Commentary was provided by these panellists:
• Lily Chen, China Treasurer, Intel, Shanghai
• Michael Nelson, Head of Corporate Sales, J.P. Morgan, Shanghai
• David Blair, Senior EuroFinance Tutor & MD, Acarate, Singapore (conference chair)

Key findings
• A majority of treasury and finance professionals (60%) in China feel more confident about their business’ prospects in the next year. This means that, while Chinese treasurers are less optimistic than their peers in India (66%), they are more confident in their business’ prospects than treasurers in Southern Africa (58%), Brazil (55%) and Europe (38%). [Question 1, see Global Context below]
• More than six in every ten Chinese treasurers (61%) believe that the RMB will appreciate by up to 5% against the US dollar in the coming year. Some 19% think it will remain about the same, while 13% think the appreciation will be greater than 5%. Only 7% believe that RMB will depreciate to any degree. [Question 3]
• Over half of treasury and finance professionals in China (58%) are currently using cross-border RMB for trade settlement, intercompany loans, or for both. Just over a quarter of treasurers in China (26%) are not yet using cross-border RMB but plan to in the future, while just 16% say that it is not relevant to them. [Question 4]
• Treasury and finance professionals in China are happy with their level of cash visibility and ability to deploy it within the organisation. Over six in every ten treasurers (61%) are of this opinion. [Question 9]