IGTA Journal - Autumn 2017

What’s the right balance between risk and reward? How do treasurers drive growth while managing the risks that growth brings? This was the overarching theme of the Asia Treasury Leaders’ Forum held in September in Hong Kong. Nearly 300 delegates from the region’s leading corporates spent a highly focused day debating the issues. With support from the territory’s two treasury associations, the Hong Kong Association of Corporate Treasurers and the International Association of CFOs and Corporate Treasurers, this event is the largest professional treasury association conference in Asia. Hong Kong is a business and financial conduit in and out of China both regionally and globally, and remains a leading international financial centre in its own right. As part of that leadership, the Hong Kong Monetary Authority (HKMA) makes considerable efforts to ensure business and corporate treasury in particular is at the forefront of its financial services management. Enoch Fung, HKMA’s head of market Peter Matza is speakers’ chair at the ACT LOOKING EAST THE RENMINBI, FINTECH AND FUNDRAISING WERE THE HOT TOPICS AT THE ASIA TREASURY LEADERS’ FORUM. PETER MATZA REPORTS www.treasurers.org/thetreasurer November/December 2017 The Treasurer 15 development, emphasised the authority’s focus on supporting corporate treasurers in their increasingly strategic role. Alicia García-Herrero, adjunct professor in economics at the Hong Kong University of Science and Technology, described the split between global central banks, ranging from the hawkish – the US Fed – and dovish – Bank of Japan. The People’s Bank of China wasn’t likely to sanction a rise in the renminbi, she said, leaving it at the softer end of that spectrum. The renminbi remains a managed currency with occasional ƪip-ƪops between open and controlled capital movements. Fintech drew some high-level discussion – does it deliver? Is it secure? – and some practical, case-study-driven examples of the benefits to operational treasury, such as regular FX trading. Contributors agreed on one essential feature: the pace of change is increasing and driven by new entrants into traditional banking and financial services. Some delegates were concerned that the region’s multi-currencies, differing regulatory regimes ASIA TREASURY LEADERS’ FORUM and underinvestment inmarket infrastructures makes them slow to react to fintechǢ others were more optimistic on the benefits to corporate growth. Corporate funding and finance were also on the agenda, and delegates heard presentations and discussions on regional cash management, corporate financing via debt- capital markets, establishing regional treasury centres and using onshore and offshore renminbi capital markets. The most important messages from speakers to delegates were that treasurers must have a structured approach, should look across a range of alternatives and, above all, should ensure their business has financial ƪexibility. The treasurer’s role The final session of the conference shone a light on the ACT’s Business of Treasury research and its clear message on the increased strategic role that treasurers now play. The ACT’s chief executive, Caroline Stockmann, and Brendan McGraw, formerly group treasurer and now CFO at CLSA (a Hong Kong brokerage and investment firm, owned by CITIC, China’s largest full-service investment bank), discussed the challenges for treasurers in engaging across a wide range of business issues. They were keen to stress that treasurers must have a full command of their operational brief, whichwould enable them to communicate clearly to their board, internal and external stakeholders on the full range of business and financial issues where treasury has a view. Excellent communication skills are a prerequisite, Stockmann said, and treasurers should consider how they might develop a personal marketing and communications strategy alongside the development of their own and their teams’ technical and professional skills. If you cannot get your message across, it matters very little how technically sound that message is. Delegates network at this year’s Asia Treasury Leaders’ Forum Ask the experts session (left to right): Henry Webb, Peter Guy and Vincent Liu of General Electric Company Peter Matza (right) with Henry Webb of Morgan Stanley (left) and Peter Guy of the South China Morning Post (middle) IGTA eJournal | Autumn 2017 | 52