Venus Zhao, head of IR at Far East Consortium International, won the best investor relations officer (small & mid-cap) award at the IR Magazine Awards – Greater China 2016, and her work contributed to her company winning two more gongs. Here she answers questions from Andrew Holt on the challenges behind her role.
What have been the biggest challenges over the last 12 months from an IR perspective?
The biggest challenge has been the macro environment, which has been changing rapidly, as were the capital markets over the last 12 months. The capital markets in 2016 were full of surprises: the UK voted to leave the EU in a referendum in June, with the pound’s fall to a 31-year low below $1.20 at one point a testament to the uncertainty.
Donald Trump’s defeat of Hillary Clinton in the US presidential election was another Black Swan event. Among the other top stories of 2016, the US central bank finally raised its main interest rate to between 0.5 percent and 0.75 percent. The markets are predicting another three to four increases next year.
Those expectations have helped the dollar rally, especially as other major central banks persevere with super-loose monetary policies to breathe life into their economies. Depreciation pressures on the Chinese yuan renminbi against the dollar have been severe this year, especially after the Fed rate hike, when demand for the dollar picked up.
How did you deal with these?
From an IR perspective, we needed to respond to the macro changes very quickly and understand how the money flows. We arranged non-deal roadshows in suitable cities to capture the money flow.
What challenges do you think small caps in your region face compared with other regional small caps?
Small caps share some similarities across the regions, such as liquidity issues. We have worked very hard to enhance transparency and corporate governance. Our liquidity is gradually improving.
What do you think has been your greatest achievement as an IR professional at Far East Consortium International?
I think the greatest achievements for me as an IR professional are: leading the team to communicate the ‘Chinese Wallet’ and regional diversification to our investors, providing investors’ feedback to our management, further improving our strategies and operations, and helping to improve the company’s transparency and corporate governance. This is all two-way communication, which could not have been done without the support of our investors and our management.
What do you see as your company’s greatest IR-related challenge over the next 12 months?
To continue attracting more suitable investors to invest in our company and grow with us. The company is committed to rewarding our investors via stable dividends and sustainable net asset value creation in the long term.
What is the greatest lesson you have learned during your IR career?
I would not say it is the greatest lesson, but the principle I will always keep in mind is integrity: always tell the story how it really is. It is a way to win trust and confidence from investors.
What did winning the IR Magazine Awards mean to you and the company?
I would like to thank IR Magazine for the award of best investor relations officer (small & mid-cap). Far East Consortium was honored to receive eight award nominations and to win three top gongs at the IR Magazine Awards – Greater China 2016, including best overall investor relations (small & mid-cap).
Encouraged by this recognition, we will continue to uphold best-in-class standards in our investor relations work and corporate governance while carrying out best practices with clear accountability to the investment community and general public.
