Economic and Financial update, Impacts of the Financial Crisis

Handelsbanken
Executive Vice President and Head of Handelsbanken Denmark, Frank Vang-Jensen, opened this well-attended member meeting by introducing Handelsbanken. Mr. Vang-Jensen announced that in 2009 Handelsbanken’s branch in Shanghai will become the first Nordic bank in China to receive a RMB-licence which will allow Handelsbanken to offer RMB based transactions.

Mr. Vang-Jensen’s presentation can be accessed here.

Banking in China
Second, Claus Frandsen, Senior Account Manager, Handelsbanken Shanghai, presented the regulatory authorities relevant to banking in China; People’s Bank of China, China Banking Regulatory Commission and State administration of Foreign Exchange. Mr. Frandsen further touched upon some of the many strategic and practical considerations in connection with establishment in China; capital requirements and structure, possibilities of financing, cross-boarder transactions etc.

Mr. Frandsen’s presentation can be accessed here.

Economic and Financial update, Impacts of the Financial Crisis
Lastly, Thomas Haugaard, Senior Economist, Handelsbanken Capital Markets, gave an economic and financial update of the Chinese economy’s sudden change from overheating to economic slowdown. Where the Chinese government’s economic focus in 2008 mainly had centred on limiting inflation, focus quickly changed in the last quarter of 2008 to ensure a continuation of the high growth rates of the past years.

On 9 November 2008, the Chinese government announced a major stimulus package of USD 586 billion to boost investments over the next two years. Domestic demand will be a major driver of growth and domestic demand will be encouraged by public investments in social security measures aiming to increase purchase power.
 
The Chinese government is striving to keep the growth rate of the Chinese economy above 8% in 2009-2010; a figure relatively close to Handelsbanken’s forecasts of 7.5% growth in 2009 and 8.5% in 2010. China’s advantage in low manufacturing costs coupled with the increased focus on moving up the value chain should further allow the economy to recover fast from the global downturn and return to higher growth rates in the years to come.

Mr. Haugaard’s presentation can be accessed here.