The China Forex Forum

Euromoney is delighted to announce that the second annual Euromoney China FX Forum will return to Shanghai on 6 September 2012.

Building upon the success of the inaugural China Forex Forum in 2011, this year’s event will provide context on the major FX markets and will address and answer these central questions facing all Chinese financial and non financial corporations that engage in cross border dealings:

How are global markets trading? What do I need to know and analyze?
How do I improve my risk management?

Where can I get the best advice and price based on my business model and exposures?

China sits at the centre of world trade. A global bank issued a trade forecast in February 2012 stating that world trade will grow by 86% in the next 15 years. It expects international trade to accelerate from 2014. The report predicts world trade to double in the next 10 years rising to $33 trillion in 2020. Intra regional trade in Asia is set to increase dramatically.

China’s trade growth is expected to be faster than other countries.

Personal savings are strong and most global banks forecast a soft
landing for the Chinese economy. The increasing consumption in the Chinese economy will shift buying into a broader range of commodities driven by changes in diet, demand for better health care products, foreign white goods, cars and other products.

Of Asia Pacific’s top ten largest trading partners, eight are regional: China, Japan, South Korea, HK, Thailand, Malaysia, Indonesia and Singapore with only Germany and the USA ex Asia Pacific. In the coming five years Asia Pacific’s fastest growing exporters and importers are expected to be India, Australia, China and Indonesia. That’s a minimum of eleven currencies to consider.

Behind every aspect of trade sits the global foreign exchange markets and the management of the risk embedded in all foreign exchange transactions and foreign currency exposure can and does have tremendous impact on a corporations P&L. Comprehensive and effective management of this risk is essential.

‘Widening the band is to meet market demands, promote price discovery and provides more versatility for a managed floating exchange rate regime based on supply and demand and operates in reference to a basket of currencies’ – PBOC. As China continues to shift to a market orientated exchange rate system the implications for companies on the mainland are profound.

Band widening increases the potential for RMB volatility – companies inevitably need to seek more tools to guard against volatility.

Companies need to guard against possible miss matches between their expected receipts and payments due to exchange rate fluctuations.

Greater attention to transaction management is demanded.

What derivative tools exist to protect Chinese companies from rises and falls in the strength of the RMB?

The forum will bring together expert economists, bankers, institutional investors, corporate treasurers and service providers to discuss and debate all these issues and more. Do not miss out on your chance to attend. Apply now for your free place and join us in Shanghai on 6 September for the China Forex Forum 2012.