Latest Regions Articles

Hedging Renminbi Risk - End of the One-way Bet?

Kevin Lester, Validus Risk Management - Jeremy Wang, Validus Risk Management | 21 July

In mid-January this year, the Chinese renminbi (RMB) strengthened to a rate of 6.0406, its strongest level against the US dollar (USD) since China de-pegged its currency from the dollar in 2005. Since that time, USD/RMB had effectively been a one-way bet; the RMB was both an attractive vehicle for carry traders seeking to exploit the renminbi’s juicy yield - currently almost 5%. Additionally, it was a way for corporate treasurers to boost profits, often using structured derivatives (such as target redemption forwards) to capitalise on a view that the RMB would continue to strengthen.

China: On its Way towards a Risk-based Insurance Solvency Regime

Dr Jianzhong Yao, ACR Capital Holdings | 18 July

Since China reopened its insurance markets in the 1980s, the Asian giant has become one of the fastest growing insurance markets in the world, with the nominal annual premium growth rate of the property and casualty (P&C) sector in the past 10 years reaching about 22%. According to industry figures, China’s premium volume of US$126bn ranked it as the third largest P&C market worldwide in 2013, only marginally behind Germany’s US$133bn (the US remains a distant leader with a P&C premium volume of US$726bn). As at the end of 2013, China’s total insurance assets amounted to US$1,338bn, of which US$177bn stemmed from the P&C sector.

Going Global and Multifaceted Markets

David Blair, Acarate Consulting | 14 July

The steady trend towards globalisation and increasing competition in domestic markets have persuaded many companies to set up operations in emerging markets (EM) or in other regions overseas that offer the potential for growth. New market entry comes with risks, also known as surprises. How can treasurers help manage these?

Regions Blogs

Regions Interviews

Regions Q&As

Regions Videos