RMB round-up: CBRC signals stricter regulations, China reports 6.8% GDP growth in Q3, US says China is not a currency manipulator

The head of China Banking Regulatory Commission (CBRC) says financial regulations in China will become stricter in future, the Chinese economy grows by 6.8% in the third quarter, the US backtracks from labelling China a currency manipulator ahead of president Donald Trump’s visit to China.

  • By Noah Sin
  • 20 Oct 2017
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Regulators:


  • Financial regulations in China will be stricter in future as regulators seek to control financial risk and maintain stability, Guo Shuqing, chairman of CBRC, said on the sidelines of the 19th Communist Party Congress on October 19.
    “The trend points towards stricter financial regulations, strict implementation of the law, rules and discipline,” he said.
  • Guo also highlighted non-performing loans (NPLs) as a major risk to the stability of the Chinese banking sector.
    “This is a very serious problem,” said Guo. “We need to fully expose these NPLs, strengthen the way we do it and digest [NPLs] in a timely manner… Only then can we maintain the banking industry’s healthy development.”


Economy:

  • The Chinese economy grew by 6.8% in the third quarter, according an October 19 notice published by the National Bureau of Statistics.

FX:

  • Chinese banks made a $300m net purchase in FX in September, which represented an uptick from a net sales of $3.8bn in August, according to figures released by the State Administration of Foreign Exchange on October 19.
  • Bank of China (Hong Kong) has been approved by CFETS to conduct transactions in currency swaps and options in the interbank market, effective October 20.

Trade:


  • The US has refrained from naming China a currency manipulator, according to an October 17 report by the Treasury. But the Treasury has kept China on its monitoring list, alongside Japan, Korea, Germany, and Switzerland, arguing that US businesses are still hampered by unfair competition from its Chinese peers.
    “The Treasury remains concerned by the lack of progress made in reducing the bilateral trade surplus with the US,” said the report. “Further opening of China’s economy… would provide more opportunities for American firms and workers to compete in Chinese markets and facilitate a more balanced economic relationship between the US and China.”
  • The comment came after the White House announced on October 16 that Trump is set to visit China on November 8-10, and hold a series of bilateral meetings with his counterpart, Xi Jinping.


  • By Noah Sin
  • 20 Oct 2017

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 Bank of China (BOC) 28.15
2 CITIC Securities 21.52
3 China CITIC Bank Corp 9.93
4 China Merchants Bank Co 9.38
5 Industrial and Commercial Bank of China (ICBC) 7.73

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 15-Nov-17 Daimler Germany 4,000
2 13-Oct-17 Global Logistic Properties Singapore 1,000
3 19-Sep-17 Skyworth Digital Holdings China 2,000
4 14-Sep-17 Bank of China (Hong Kong) (BOCHK) China 9,000
5 05-Sep-17 Joy City China 1,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 31.63
2 BNP Paribas 16.57
3 HSBC 14.01
4 JP Morgan 13.39
5 Credit Agricole 11.30

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 15-Nov-17 Bank of China Paris Branch (BOC Paris) China 1,000
2 02-Nov-17 Hitachi Capital (UK) United Kingdom 500
3 27-Oct-17 Korea Development Bank (KDB) South Korea 1,400
4 19-Oct-17 Commonwealth Bank of Australia (CBA) Australia 1,500
5 11-Oct-17 BMW Finance NV The Netherlands 1,000