Recent capital flows out of China reversed course dramatically at the start of this year, with a record jump in a key gauge of inflows in January as investor confidence in the Chinese economy revived.
According to China’s central bank, the People’s Bank of China (PBOC), companies and individuals sold renminbi (RMB) 684bn worth of foreign exchange (forex) and bought an equivalent amount of Chinese currency in January, a record figure for any single month.
Renewed demand for renminbi assets followed the smooth handover of power to a new generation of leaders in China and eased assuaged fears of political instability, It was further assisted by a rebound in the country’s stock and property markets as China’s economy rebounded in Q412 from a two-year downturn.
Meanwhile, reports suggest that Chinese firms are assessing the risk that Venezuelan President Hugo Chavez’s death poses to investments worth at least US$50bn, after 14 years of closer ties between the Latin American country and China.
A report by Bloomberg states that China Development Bank Corp (CDB), which has lent Venezuela more than US$40bn since 2008, has contingency plans in place according to Yao Zhongmin, head of the bank’s supervisory board. The state-owned conglomerate Citic Group Corp is also assessing the risks, said its chairman, Chang Zhenming.
The US money market fund reforms came into effect in 2016 and are already dramatically shaping US fund industry with investors flooding out of prime funds and into government securities. While the reforms are similar, they are not the same. GTNews interviews Yeng Bulter, global head of the cash business at State Street Global Advisors on the differences.
Far and away, the largest financial market on the planet is the foreign exchange currencies market, where on average individuals and organisations trade more than $5 trillion daily. In the FX world, the ability to master the market isn't considered a luxury for treasury officers–it's a necessity.
Treasurers are more interested in cross-border payments and automation than real-time payments, as they are consistently asked to do more with less, argues Rick Burke, head of corporate payments at TD Bank in an exclusive interview.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.