Commentary

2 reasons why the Sino-US Dialogue did not focus on the value of RMB

The fifth China-US Strategic and Economic Dialogue concluded on 11 July. Unlike previous meetings, the emphasis was not on the value of the renminbi (RMB). There seem to be two reasons. First, China’s current surplus has come down to 2.3% of GDP in 2012, comfortably below the 4% proposed by the US as a way of defusing tension over currencies. Second, the RMB has appreciated 3.4% against the USD since Aug12; the most among Asia ex-Japan currencies. Over the same period, the RMB has strengthened 6.6% in nominal trade-weighted terms.

2 reasons why the Sino-US Dialogue did not focus on the value of RMB

The fifth China-US Strategic and Economic Dialogue concluded on 11 July. Unlike previous meetings, the emphasis was not on the value of the renminbi (RMB). There seem to be two reasons. First, China’s current surplus has come down to 2.3% of GDP in 2012, comfortably below the 4% proposed by the US as a way of defusing tension over currencies. Second, the RMB has appreciated 3.4% against the USD since Aug12; the most among Asia ex-Japan currencies. Over the same period, the RMB has strengthened 6.6% in nominal trade-weighted terms.

An over-engineered finance industry has gone too far

The other day I conducted a simple statistical experiment. I calculated the “value-at-risk” exposure for an hypothetical investment portfolio consisting of just one bond holding.

6 implication areas in digital strategy Asian wealth managers should bear in mind

Wealth management companies, like those in many other industries experiencing digital disruption, need to adapt quickly and pragmatically to determine their digital strategy.

Legal principles to watch out for in trade credit insurance

In my last article, I wrote about Trade Credit Insurance (TCI) and its usefulness.

Check out the most in demand jobs in Asia's banking and finance sector

There are still pockets of skills shortages throughout the Asian finance and banking sector – giving us evidence that employers are looking for people who can help them make informed business decisions, maintain costs and comply with regulations. 

What you need to know about the Indian debt market

Debt market outlook Indian debt market witnessed heightened volatility during the last week due to Central Bank’s measure to curb liquidity in the system by reducing the limit on LAF repo window to Rs 75,000 Cr and simultaneously increasing the cost of borrowing under the marginal standing facility rate by 200 bps to 10.25%.

Which Asian transaction bank really understands their customers?

Understanding the Customer is a key metric in Asian Transactional Banking Markets, and is influenced by a growing number of product and service attributes. But how well do Asian Banks really understand their customers?

Why Southeast Asia is a hotspot for financial services M&As

Despite the global economic and regional political uncertainty leading to a cautious approach towards M&As, the financial services sector in Southeast Asia’s (SEA) developing markets has seen buoyant activity. In H1 2013, several big-ticket transactions took place.

What you need to know about simplified RMB cross-border trading

On 10 July, the People’s Bank of China (PBoC) announced a series of measures aimed at simplifying renminbi (RMB) cross-border transactions.

Do's and dont's in re-entering the workforce in financial services sector

As the financial market has seen some signs of improvement, there is a new profile of job seeking candidates who are looking to re-enter the financial services workforce.

Why cybercrime is a banker’s nightmare

It is not the world recession or Eurozone meltdown that bankers fear the most but cybercrimes above anything else. In Britain alone, it was reported that four out of five of Britain's biggest banks had identified cyber attack as their biggest threat today.

Asian banking continues to fuel growth of HNWI

Over recent years Asian banking markets have grown accustomed to good news, even as the global financial sector struggled to regain peak performance and recover investor sentiment that, even now, often remains dampened by the 2008 crash.

How technology can help Asian banks remain competitive

It is no secret that Asia is getting wealthier. According to research from PricewaterhouseCoopers, domestic credit in China could overtake the US by 2023, and India will become the third largest domestic banking sector after China and the US by 2050.

Check out the contextual differences in financial regionalization

‘Have you seen the big five?’ said the gentleman who drove the van from Gaborone airport to the hotel where I was staying to attend the African Regional Conference organized by SWIFT in Botswana.

What Asian banks need to know about customers' trust and fair treatment (Part 3)

In Part Three of a special series of reports regarding conduct risk/consumer protection regulations, we start with an overview of existing Asia Pacific regulations designed to address misleading and deceptive practices.

Realities of China’s shadow banking

Over the past one week, markets have been on a roller coaster due to various global & domestic factors. One of the key concerns was ‘Chinese Credit Crunch’. China being the 2nd biggest economy in the world contributing a substantial portion of the global GDP, felt like sharing some insights regarding the same to dispel fear among the investing public.

How to make infrastructure attractive to the investor

When talking about infrastructure investment, one thinks of various types of risks starting from political risks, operational risks, over-running cost & time risks, and so-on. These types of risks make the investment unattractive to investors.