FCI Interview: Inside the mind of Mr Lin Hui on Trade trends in China for 2019
Following the FCI’s recent appointment of Mr Lin Hui, Chapter Director of NE Asia, we asked him about some of the top trends in China and beyond, the impact of the BRI on exporters, and his new role at FCI.
We had the pleasure of speaking to Mr Lin Hui, Regional Director of North East Asia covering China, Japan, Korea and Mongolia.
What are the key trends in China in relation to trade right now and what are the biggest challenges for small to mid-sized corporates?
The most obvious trend is that China is transforming its economy into a consumption-driven growth model from export-led growth. With One belt One Road initiative, this trend will have a significant and direct impact on the trade in the region. We will see more demands and innovations rising from its import and domestic supply chain and trade finance area.
China’s SMEs particularly in the export sector are mostly vulnerable to the US-China trade war. However, SMEs are also vibrant elements in many industries. During the transition process of the world’s second largest economy, there will be huge risks as well as opportunities to the SMEs. Factoring is proved its role in SMEs financing. FCI is to develop closer ties to our members in the region and to promote the best practice supporting their SMEs clients.
What are the general Asia trade finance trends and what CFOs/ treasurers are thinking about, with regards to risk, digitalisation and sustainable trade finance?
According to a recent survey by the Shanghai National Accounting Institute, Financial Cloud and E-invoicing are ranked top two influential technologies in the year 2018 by the CFOs/treasurers in the region. Technology is changing the business world.
FCI will work closely with our members in the region, to reflect and support their interest and concerns in the digital era, and to facilitate the sustainable growth of the industry.
We’ve seen huge changes in the receivables space through new technology and the digitalisation of trade. What are the big opportunities and how will your roles at FCI help encourage trade and educate banks and corporates?
FCI offers the standardized receivables solution through the network of our 400 members around the world, including cross-border factoring, invoice verification, purchase order management, FCIreverse, as well as the EDIfactoring infrastructure. The FCI network also facilitates the sharing of know-how and best practice of the industry worldwide among our members. Standardization, network, and know-how sharing are the three advantages to be an FCI member. So far we have 49 members in Mainland China, 20 in Taiwan, 13 in Hong Kong, 3 in Japan and 2 in Korea. Most of them are banks. I am going to encourage our members in the region to fully utilize these FCI facilities, to contribute and to benefit each other from the network effect.
What are your key objectives as you step into your new roles?
My key objectives are to help FCI to take a leading role in building a healthy, vibrant environment for factoring and receivables finance services in the region, and to support our members’ business growth and benefits from FCI network.