FINANCE approach in Greater China (HK, CN, TW) - 1. part

To know the rating approach of banks/rating agencies is crucially important for all the companies trying to approach banks with good projects, with a projects with higher probability of acceptance.

As we may know Hong Kong is for a long time a financial center of Greater China (Taiwan, China, Hong Kong). For all the foreign companies operating in the region it is, in many cases, the best location for the financial, cash flow and legal services. We shall do business within mainland or Taiwan, but we would always suffer by the local approach as long, as we just do sell, produce or purchase within countries, but let all cash flow, financing or legal aid to be happening in HK.

This rating matrix shows the relationship between rating of the country and the probability of default. We may also observe a small example of the countries following the recent Standard & Poor's rating model. The probability of default was derived from BASEL III ECAI Plus.

In other words we may say, that the risk of default of Finland is 10.1 smaller, than China's one and 25x smaller than Malaysian one. The risk of default of Cyprus is 15,6567%.

We may also see, that a risk of Taiwan, China and Hong Kong is different. China's risk is 0,0333 on the way up to 0,0834% with stable outlook, Taiwan's risk is the same. Hong Kong risk is 10.1 times smaller with stable outlook. This is important fact to consider.

For current data on rating please follow Wikipedia - List of countries by credit rating

Banking as Czech company in Taiwan

Banking in Taiwan is a different story, you will survive in Czech republic. Maybe the main reason is out coming from the reality. The Taiwanese system is somehow the same, as we have in Czech republic and somehow so different.

Basic business I.

By the first visit in the local bank in Taiwan you can sense, like you are in Czech republic in year 1998. The banks look old, the chairs are not in good condition and walls are not nicely white, as we are used now. Employees sit by old tables, folders behind them in not proper order. Customers need to wait on chairs and they can see and observe all the things the others are doing. And in the end you need a thousand stamps for everything.

You need to fulfill many forms in traditional Chinese. If there is something unusual, like USD dollars with wrong numbers (cause they had been from suspicious set), you have no chance to change them. If you want to change 300 USD, you need to show your passport, the place you live in Taiwan and your cell phone number. Bank is open 9-3.

If you do not speak Chineese,  you might have a problem. Mandarin Chineese is not always a case, you need to speak.