On August 11 2015, China announced a devaluation of the renminbi alongside a new methodology for generating its official daily USD/CNY fix. This special section traces our coverage across GlobalRMB and GlobalCapital during a momentous few days for global markets.

How It Happened

  • PBoC takes hint from IMF SDR report, upgrades RMB fixing

    The People's Bank of China (PBoC) has changed its daily exchange rate fixing methodology to make it more related to market levels, in a move that analysts saw as helping the renminbi's case for inclusion in the International Monetary Fund's SDR basket.

    • 11 Aug 2015
  • More quotes, less black box: new PBoC fixing system brings RMB closer to market

    There was widespread surprise among analysts on Tuesday at the People's Bank of China (PBoC) move not only to weaken the onshore RMB (CNY) fixing by nearly 2% overnight, but also introduce a new system to establish the daily central parity rate from August 11.

    • 11 Aug 2015
  • No let-up in China FX reform as PBoC allows foreign entities into onshore market

    The People’s Bank of China (PBoC) said on Thursday that it would allow qualified foreign entities to participate in the onshore foreign exchange market in a move that is aimed at helping encourage the convergence of the onshore and offshore renminbi FX rates. The development came in an already turbulent week for the RMB, which has seen a big devaluation as the PBoC changes its approach.

    • 13 Aug 2015

What It Looked Like

Asia Market Reactions

  • Quick fix: Renminbi changes welcomed one year on

    It has been one year since China shocked the world with a new methodology for generating its official daily USD/CNY fix that caused a sharp fall in the currency. Market participants told GlobalRMB that the new regime has been a step up from the old system, but while more near-term reforms are unlikely, they are bracing for even more volatility.

    • 10 Aug 2016
  • The jury is out as market digests RMB moves

    Opinion is divided about whether this week's unexpected move by the People’s Bank of China (PBoC) to devalue the renminbi marks a landmark for the country or reeks of desperation.

    • 13 Aug 2015
  • Dim sum takes huge blow from tumbling RMB

    The sharp fall in the renminbi is expected to take a huge toll on offshore bonds in the currency, shutting down the pipeline at least for the rest of the month. But more worrying are the potential longer term consequences if the downward pressure spreads to other Asian EM currencies.

    • 13 Aug 2015
  • Investors dump shares in Asia but calm is creeping back

    Asia’s equity markets endured a vicious sell-off after China unveiled a shock devaluation of the RMB this week. But bankers and fund managers were nonplussed, with many calling the turmoil an over-reaction. As composure returns to the market, investors are keen to put the episode behind them.

    • 13 Aug 2015
  • More devaluation to come as FX traders think RMB could drop another 6%

    The renminbi could be set to fall another 6% before it finds a bottom, onshore China FX traders told GlobalRMB on Wednesday, after two days of the biggest devaluations in the currency for decades. The daily fix fell 1.86% on Tuesday and a further 1.62% on Wednesday, to 6.3306, but traders said that it could hit 6.70 before finding a bottom.

    • 12 Aug 2015


  • Renminbi 8/11: Less complacency, please

    It has been a brave new world for the renminbi since the People's Bank of China (PBoC) shook global markets with its surprise devaluation just over a year ago. But while there are signs that things have moved in the right direction, it seems a little early to trumpet the move as a policy success.

    • 15 Aug 2016
  • RMB fixing: Right decision, wrong time, global consequences

    Tuesday’s surprise decision by the People’s Bank of China to allow the renminbi to be more market-driven was an important and necessary step as the country attempts to move to a more open economy. The mistake has been to do it at a time when China is under stress from falling economic growth. But what the fallout has made abundantly clear is that the renminbi is already a global currency.

    • 13 Aug 2015
  • Just when you thought it was safe…

    It wasn’t supposed to be like this. US rate rises were very much a question of when, not if. A third Greek bail-out was all but agreed.

    • 13 Aug 2015

Global Consequences

  • Chinese new fear: Yuan more headache for SSAs

    China’s shock decision to devalue its currency this week threw up a raft of potential difficulties for a public sector bond market already fretting over other central banks’ actions.

    • 13 Aug 2015
  • Tough conditions can’t deter AT1 as market proves maturity

    The AT1 market has come of age. In just over two years there is no longer a need for arduous investor education and perfect markets to sell the riskiest bank debt on offer.

    • 13 Aug 2015
  • China stymies dollar mart after Europe takes $7.5bn

    Widespread concern over China’s currency strategy put the brakes on European banks’ use of the dollar market this week, which began with a $7.5bn raid on the currency by four borrowers.

    • 13 Aug 2015
  • BNPP dodges China with US focused trade

    BNP Paribas played it safe on Wednesday, printing its $1.5bn AT1 in US hours to avoid any potential fall-out from the China related sell-off.

    • 13 Aug 2015
  • Renminbi markdown kills offshore MTN surge

    China’s devaluation of its currency has halted private medium term note business in offshore renminbi after it led to a plunge in the renminbi/dollar swap rate. But when the basis swap stabilises issuance will return just as soon as investors readjust their yield targets, say MTN bankers.

    • 13 Aug 2015


  • Credit fails to see positives of currency war

    Back in 2010, Brazil’s finance minister Guido Mantega warned that the world was in the midst of a “currency war” in the wake of US quantitative easing. The term is now back in vogue after China made the shock decision to devalue its currency.

    • 13 Aug 2015
  • ETF options diverge on China devaluation as equity volatility rises

    With China’s devaluation having brought rising uncertainty across global markets, volatility measures for many options on exchange traded funds have not kept pace with those that reference their underlying securities.

    • 13 Aug 2015
  • Total Derivatives: Swap trade opportunity from RMB devaluation fallout

    Since adjusting its currency fixing process on Tuesday, the People's Bank of China (PBoC) has overseen the biggest two-day depreciation in the yuan in more than two decades. HSBC has described the CNY swap market sell-off as counterintuitive — and sees current elevated rate levels as an opportunity, writes Maia Ririnui of Total Derivatives.

    • 12 Aug 2015
  • Total Derivatives: PBoC fixing revamp triggers CNY paying

    The CNY rates market slumped on Tuesday after the People's Bank of China (PBoC) dropped its currency fixing by a record 1.9% alongside announcing a new methodology for conducting its daily fix. USD/CNY was set at 6.2298, its lowest level in almost three years.

    • 11 Aug 2015

Panda Bonds Top Arrangers

Rank Arranger Total Volume Rmb (m) No. of Deals Share % by Volume
1 Bank of China (BOC) 7,500 5 22.26
2 Agricultural Bank of China (ABC) 4,000 2 11.87
2 Everbright Securities 4,000 1 11.87
4 Industrial and Commercial Bank of China (ICBC) 3,500 2 10.39
5 HSBC 3,000 2 8.90

Bookrunners of Asia-Pac (ex-Japan) ECM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 26 Oct 2016
1 CITIC Securities 15,417.46 59 6.69%
2 Morgan Stanley 11,809.74 49 5.12%
3 GF Securities Co Ltd 11,402.65 45 4.95%
4 Deutsche Bank 8,930.26 36 3.87%
5 China Securities Co Ltd 8,697.57 46 3.77%

Bookrunners of Asia Pacific (ex-Japan) G3 DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Oct 2016
1 HSBC 25,655.98 155 9.54%
2 Citi 24,170.03 132 8.99%
3 Bank of America Merrill Lynch 21,409.23 104 7.97%
4 JPMorgan 18,713.00 109 6.96%
5 Goldman Sachs 12,065.00 52 4.49%