Funding & Investment

Trade uncertainty has been cited as a major risk that could slow economic growth, as currency volatility continues across Apac, with the Taiwanese dollar surging.

Treasury leaders from Klook and Hysan Development shared their FX position and risk management strategies.

Stock markets have fallen sharply and global recession risks have climbed as US import tariffs could rise to the highest level in a century on April 9; a weaker dollar could help address US trade deficits.

US inflation was lower than expected in February; the 2.8% read came as the US introduced global 25% tariffs on steel and aluminium imports; and then the EU and Canada retaliated; in Apac, Australian and Korean steelmakers are most at risk.

Companies from around the world are looking towards Asia for M&A and other investment opportunities, with US policies, such as tariffs, the biggest risk factor in the region.

As the financial world changes rapidly, so too is the nature of risk that market participants must tackle.

HSBC has become the latest bank to sign a $1bn risk-sharing facility with the International Finance Corporation, to help address a trade finance gap in emerging markets.

After a 9% decline in Apac M&A, excluding Japan, in the first nine months of 2024, a rebound is on the cards over the next 12 months as firms look to innovate and sentiment improves.

The new index, created jointly by Dun & Bradstreet and the HKECIC, looks at credit risks, including insurance, payment history and the macroeconomy, across China, the US, Germany, the UK and Canada.

Scott Leader will be in charge of growing the business in Asia Pacific, where it is seeing a surge in demand for trade surveillance and risk solutions, notably from crypto exchanges.

Asian corporates may have less direct exposure to trade and economic shocks than their European and US counterparts, but they could face fundraising challenges and growing cybersecurity risks.

Mitigating systemic risks when LIBOR expires is all about fallback clauses and the International Swaps and Derivatives Association is taking further steps to firm up the post-IBOR world.