港中大MBA创业金融讲义L. FX-NDF Presentation master May 2004 1.pptVIP

INGB\Madrid\Contents Current RMB Interest Rates Historic RMB Interest Rates 2. USD Interest Rates Comparison between USD RMB rates Graph of 5-year RMB interest rate (fixed)- past 10 years Graph of 5-year USD interest rate (fixed)- past 10 years 3. USD loans versus RMB loans = trade off: currency risk versus interest rate risk A company in China can choose to finance its short and long term assets (usually denominated in RMB) with a RMB loan or a USD loan. USD Loan Lower interest rates Possibility to get fixed rates, via a fixed loan or an Interest rate Swap Currency risk: if RMB