China’s cross-border interbank payment system (CIPS), launched on October 8, is revolutionising the way payments are made and received in RMB across the globe. The system is just in its first phase, but as it expands its reach, the role of offshore RMB clearing banks will be called into question.
China’s newly launched Cross-border Interbank Payment System (CIPS) is fundamental to the internationalisation of the renminbi as it centralises liquidity and will save costs, says Marcus Sehr, global head of institutional cash, global transaction banking at Deutsche Bank.
Next month sees the launch of the China Europe International Exchange (CEINEX), a joint venture between China and Germany. The exchange will develop and distribute offshore RMB including five new ETFS that are expected go live at the same time as CEINEX.
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China gave a clear signal of its ambitions for the long awaited Cross-Border Interbank Payment System by launching it with a series of debut transactions by China and international banks in at least three different continents. CIPS, which was up and running on October 8, is expected to play a key role in the next stage of RMB internationalisation.
The People’s Bank of China (PBoC) has issued a set of rules for the renminbi Cross-border Interbank Payment System (CIPS) to the first batch of 19 participating banks. According to a copy of the document that GlobalRMB has obtained, the central bank released the rules on September 11 and they are to be applied imminently.
China plans to allow foreign central banks to participate in its onshore foreign exchange market, premier Li Keqiang said in his keynote speech at the World Economic Forum held in Dalian on Thursday. It supports last month’s statement from the People’s Bank of China’s (PBoC) that qualified foreign entities are welcomed in China’s onshore FX market.
The first phase of the China International Payment System (CIPS) will be completed before the end of 2015 in Shanghai, adding a vital new piece of infrastructure to the RMB internationalisation process.
The Society for Worldwide Interbank Financial Telecommunication (Swift) is poised to play an important role in China's upcoming offshore renminbi Cross-border Inter-bank Payment System (CIPS).
Asiamoney Cash Management Poll 2015
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Asiamoney Fixed Income and FX Polls
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People’s Bank of China (PBoC) has lifted the threshold for multinational corporations (MNCs) to use the cross-border cash pooling scheme across China. The scheme had originally been introduced in the Shanghai pilot free trade zone (FTZ) in early 2014.
Swift RMB Tracker
The renminbi fell back one place to be the fifth most used currency for international payments by value, Swift said in its October 29 report.
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Panda Bonds Top Arrangers
|Rank||Arranger||Share % by Volume|
|2||China CITIC Bank Corp||18.35|
|3||China Merchants Bank Co||14.91|
|3||Bank of China (BOC)||14.91|
Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||China International Capital Corp Ltd||7,717.05||36||5.85%|
|5||China Securities Co Ltd||5,257.70||29||3.99%|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|4||Standard Chartered Bank||11,503.67||80||4.66%|
|5||Bank of America Merrill Lynch||11,072.09||62||4.49%|
Asian polls & awards
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.
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.
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.
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.
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.