RMB round-up: BlackRock backs A-shares in MSCI, former Safe official says China should open onshore CNY market, Capital outflows reach 30-month low

BlackRock has backed MSCI to include A-shares in its benchmark index, a former State Administration of Foreign Exchange (Safe) official says China should open its onshore renminbi market, and Standard Chartered says capital outflows reach a new low in March.

  • By Noah Sin
  • 21 Apr 2017
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Key developments this week:



FX:


  • People’s Bank of China (PBoC)'s renminbi fix against the dollar was set at 6.8823 this morning, up 31bp from Thursday. In the spot market, the CNY was trading at 6.8834 as of 4.43pm, with the CNH at 6.8830, down 0.02% and up 0.01% from their previous close, respectively, according to Bloomberg data.
  • The dollar index was trading at 99.772 as of 4.36pm, down 0.01% from the previous close, according to Bloomberg. The Thomson Reuters CNY reference index closed at 93.86 on Friday, up 0.1% from its previous close.
  • China had its smallest non-FDI capital outflows ($14.7bn) since September 2014 in March, according to a report published by Standard Chartered on Friday. The report said this phenomenon may lead to gradual loosening of capital controls. “The prospect of more balanced cross-border flows has prompted Beijing to take its first small steps in relaxing window guidance on outflows,” said StanChart’s report.


Indices:

  • BlackRock has backed MSCI to include Chinese A-shares in its benchmark emerging markets (EM) index in June this year, according to The Wall Street Journal. The world’s largest asset manager said the technical issues, which stopped MSCI from including A-shares for three times, have been resolved. GlobalRMB previously reported that BlackRock’s head of equities expressed in March that she is confident that MSCI will include A-shares this year.

Regulators:


  • PBoC will take into account the possible market impact when introducing new restrictions on shadow banking, according to the central bank’s chief economist. Speaking at a forum in Washington on April 20, Ma Jun said regulators don’t want the market to over interpret its regulatory action, according to a report by Bloomberg.
  • A former Safe official has urged China to allow more market participants to trade renminbi onshore. Speaking at the Finance 40 Forum on April 20, Guan Tao, a former director of international payments at Safe, said the onshore market is dominated by banks which do not have a lot risk appetite, without which there cannot be price recovery in renminbi.


Stock Connect:



  • By Noah Sin
  • 21 Apr 2017

Panda Bonds Top Arrangers

Rank Arranger Share % by Volume
1 CITIC Securities 44.72
2 China CITIC Bank Corp 22.36
3 Industrial and Commercial Bank of China (ICBC) 10.16
3 China Merchants Bank Co 10.16
3 Bank of China (BOC) 10.16

Bookrunners of Asia-Pac (ex-Japan) ECM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 May 2017
1 CITIC Securities 6,837.51 32 7.14%
2 China International Capital Corp Ltd 6,746.42 29 7.04%
3 Goldman Sachs 5,682.95 21 5.93%
4 China Securities Co Ltd 4,703.49 25 4.91%
5 UBS 4,459.61 23 4.65%

Bookrunners of Asia Pacific (ex-Japan) G3 DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 May 2017
1 HSBC 17,927.36 101 9.30%
2 Citi 15,452.58 89 8.01%
3 JPMorgan 12,180.99 61 6.32%
4 Morgan Stanley 9,251.45 43 4.80%
5 Standard Chartered Bank 8,766.36 56 4.55%

Asian polls & awards

  • RMB internationalisation: 10 questions for the market, part 2

    Every year, our sister publication Asiamoney carries out an Offshore RMB Poll. As part of that process, the magazine asks the market for its thoughts on important renminbi topics. In this third year, we received around 2,300 valid responses, up 3% on a year ago. The ten questions included a new one on the inclusion of onshore RMB assets in global indices. Here we present the answers to the final five questions.

  • RMB internationalisation: 10 questions for the market, part 1

    Every year, our sister publication Asiamoney carries out an Offshore RMB Poll. As part of that process, the magazine asks the market for its thoughts on important renminbi topics. In this third year, we received around 2,300 valid responses, up 3% on a year ago. The ten questions included a new one on the inclusion of onshore RMB assets in global indices. Here we present the answers to the first five questions.

  • Made in China: The best banks and deals of 2016

    You know who won, now find out why. GlobalCapital Asia and Asiamoney present the extended results of our 2016 China Deals and Investment Bank of the Year awards, recognising achievement both on and offshore.

  • Asia’s standout deals

    GlobalCapital Asia and Asiamoney present the extended results for our 2016 Best Country Deals. Discover why these bond, equity and loan transactions delivered outstanding outcomes for issuers and investors.

  • Aussie award winners: The best banks and deals of 2016

    The names have been announced, now find out why they stood out from the crowd. GlobalCapital Asia and Asiamoney present the extended results for our 2016 Australia Deals and Investment Bank of the Year awards, recognising achievement in equities, bonds, loans and investment banking.