An unprecedented combination of events led by the strengthening US dollar and low interest rates, macro events in the US and Europe that are generating uncertainty in global markets, as well as the increasing digitization and use of high technology, are setting the stage for a new world order in corporate treasury.
“All these events happening at the same time can either make or break corporate treasurers in Asia since they provide opportunities but also unknown risks,” says a treasurer attending the 3rd The Asset Asia Treasury and Trade Summit being held today at the Four Season’s Hotel in Hong Kong.
Last year's 2nd Asia Treasury and Trade Summit.
The summit seeks to determine what these on-going changes mean for Asian corporate treasurers and how they can navigate this evolving landscape. About 200 leading treasurers and CFOs are expected to attend the event.
A high-powered panel of experts led by Bipin Kumar Tibrewal, group chief financial officer of Airbus India; Staney Pullolickel, treasurer of MENAT, SSA & South Asia, GE Power and Energy Connections; and Jeff Yu, group treasury director of JD.com will discuss:
• How are treasurers improving processes internally?
• How do treasurers decide which technology is best suited for their existing systems?
• How do treasurers deal with the challenge of changing regulations in Asia?
The summit will also discuss opportunities and challenges in cross border flows for Hong Kong corporate treasury centres (CTCs) including how the recent regulatory restrictions in China that limit capital outflows are making it difficult for Chinese corporates to use their onshore sources of funding to expand offshore.
A corporate treasurer who will be attending the treasury summit asks, “Are these creating opportunities for Hong Kong, whose strong ties to China make it a viable hub for corporate treasury centres in the region?”
A panel of experts led by Sohfern Boey, managing director & head of global transaction services of DBS Bank; Masashi Takeda, managing director of Hitachi Capital Management; Enoch Fung, head of market development of the Hong Kong Monetary Authority; Angus Lai, treasury officer of Avnet; and Eddie Mak, group treasurer of Kerry Logistics, will discuss the challenges and opportunities for Hong Kong CTCs.
As Asia shifts towards a domestic consumption-led growth, supply chains are also evolving, with some of the leading corporates in the region injecting liquidity into the marketplace through innovative financing solutions.
Another corporate treasurer asks, “In a credit-constrained environment, how can supply chain financing benefit the key stakeholders of a supply chain? Where are we seeing the most demand? How can corporates inject liquidity and working capital into their supply chains?”
Supply chain trends and issues will be discussed by a panel of experts led by Calvin Lim, chief financial officer of Amazon Papyrus Chemicals; Farooq Siddiqi, managing director & global head, trade, transaction banking of Standard Chartered Bank; Sunny Cheng, director, head of financial controlling of DHL; and Anand Pande, founder, The Growth Paradigm Partnership.
While the on-going renminbi internationalization has opened up new business opportunities, recent regulatory restrictions, depreciation of the currency and the fall in China’s FX reserves are impacting renminbi-denominated transactions.
Experts led by Ivan Chung, associate managing director, head of Greater China credit research and analysis of Moody’s Investors Service; Francis Ho, senior director, group treasury & project finance, CLP Holdings; and Carmen Ling, managing director & head, global RMB of Standard Chartered Bank will is discuss renminbi-related issues including:
• Where is the renminbi heading and what will it means for the offshore market?
• How are treasurers navigating the current difficulties in linking their renminbi with their regional pool?
• What are the opportunities available in the payments and cash management area?
• What’s the state of renminbi liquidity today?
Another topic for discussion is blockchain and how its underlying distributor technology is being promoted as the business solution for global payments and trade finance, and for meeting know-your-customer requirements.
A panel of experts led by Dave Chapman, co-founder and chief operating officer of ANX International; Pindar Wong, founder of Belt and Road Blockchain Consortium; Gautam Jain, managing director & global head, digitization & client access, transaction banking of Standard Chartered; and Hans Lombardo, co-founder of Chain of Things, will discuss blockchain-related issues including:
• What are blockchain’s practical uses for corporates and banks?
• How to secure more management buy-ins?
• How can banks and tech-startups work together to build efficiency?
• What are the key issues in expanding its usage and when will it take off in Asia?
