The percentage of Asia-Pacific companies reporting late payment issues remained high in 2015, and the situation isn’t expected to get better, with China proving a special concern.
Both China and Hong Kong are attempting to tackle businesses that have deliberately mis-invoiced goods traded across the border to sneak money offshore.
The deal between the two payments systems could improve corporates' ability to manage renminbi, their relationships with suppliers, and lower the cost of renminbi transactions, market experts claim.
Suppliers to the world’s largest companies are starved of crucial credit lines while banks watch on the sidelines. Financial innovation is making a difference, but corporate treasurers must play a role too.
HSBC’s strategic push to Asia promises explicit investment in transaction banking platforms and lending rates set to undercut existing lenders*, but the shift will be far less substantial than presumed.