Hong-Wei’s savvy TWD-CNY deposit arbitrage play
Taiwan elevator Manufacturer Hong-Wei is using benchmark-rate gaps on deposits to earn interest and establish a natural hedge.
Hong-Wei Electrical Industry & Co (Hong-Wei) has recently adopted a strategy of depositing renminbi and US dollars in Taiwan-based accounts at a rate of 2.5%, and borrowing in New Taiwan dollars in Taiwan at a rate of 2%.
Sign-in to access CorporateTreasurer content.
Please sign in to your subscription to unlock full access to our premium CT resources.
Free Registration & 7-Day Trial
Register now to enjoy a 7-day free trial. Click the link to get started.
Note: This free trial is a one-time offer. You are eligible for one free trial per year.
If you are a treasurer, CFO or senior finance professional at a corporate, please register to the website here.
Questions?
If you have any enquiries or would like a quote for a team or company licence, please contact us at [email protected]. Our subscription team will be happy to assist you.
© Haymarket Media Limited. All rights reserved.
Top news, insights and analysis every Tuesday & Thursday
Free registration gives you access to our email newsletters
for unlimited access to all articles, newsletters
Related Articles
Hong-Wei completes cross-strait RMB loan
Jan 30, 2014
Getting the most out of China’s regulators
May 12, 2014
China frees deposit rates in Shanghai
Jun 26, 2014