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.
A crucial court decision and improved practices around commodity assets and collateral is helping restore confidence following fraud at the Port of Qingdao
Citi failed to force Mercuria Energy to stump up $270 million, but the crucial UK High Court ruling over metals financing will provide comfort for trade finance banks in China and users of repo agreements alike.
The ruling on a critical dispute between metals trading firm Mercuria and Citi has been posted on the UK High Court's commercial list. The long-awaited decision will be publicly available today at 2:00pm BST.
The Qingdao Port investigation will drag into mid-way next year, according to a China trade services expert, treasurers can expect pre-shipment finance to be “virtually impossible”.
Despite company registrar filings that HSBC has released assets related to traders involved in Qingdao Port disputes, delays continue in trade finance.
BHP Billiton and Xiangguang Copper have transacted a first of a kind back-to-back electronic letter of credit over Bolero, shaving 20 days off a typical transaction.
A survey of China’s top companies reported a marked dissatisfaction with trade finance and liquidity management services, products they also ranked as among the most important, according to East & Partners.