Latest treasury/cash management news
The Society for Worldwide Interbank Financial Telecommunication’s (Swift) latest RMB tracker shows that during the last two years, seven new countries are using the renminbi for more than 10% of their direct payments with China and Hong Kong.
The US took a step forward as a renminbi hub in September, when Bank of China New York branch was appointed as the local clearing bank. GlobalRMB met with a representative of the Working Group on US RMB Trading and Clearing to discuss new and future developments.
China’s push to elevate the global status of the renminbi seems to be working well with the currency’s usage rate among global corporates going from strength to strength, according to the results of HSBC’s 2016 RMB Internationalisation Survey.
It has been three years since China launched the landmark Shanghai Free Trade Zone with the area originally envisioned as the blueprint for further reforms throughout the country. While market participants are disappointed by the authorities’ continued grip on capital controls, they are happy with the overall direction of the FTZ scheme.
In this round-up, the European Central Bank renews its RMB swap line, Swiss Re increases its RMB qualified foreign institutional investors (RQFII) quota, and CLS facilitates netting for RMB foreign exchange transactions. Plus, a recap of our coverage this week.
Days after China made the landmark decision to appoint a US renminbi clearing bank, it has made yet another clear political statement by appointing Industrial and Commercial Bank of China Moscow as Russia’s clearing bank, with a bond market link also in the making.
Renminbi adoption has surged in the United Arab Emirates while lagging behind in the Eurozone, according to the latest data by the Society for Worldwide Interbank Financial Telecommunication (Swift). The Chinese authorities also seem ready to increase RMB connectivity with the Middle East through a number of new initiatives.
Veolia Environnement priced its debut Panda bond on September 1, becoming the first French issuer to tap the onshore Chinese market. The firm was also one of the first corporates to be allowed to repatriate funds out of China despite ongoing capital controls, its treasurer told GlobalRMB.
RMB round-up: CIMB inks custodian deal with CCB, AIIB set for new members, CFETS adds to daily FX rates
In this round-up, CIMB signs a custodian deal with China Construction Bank to facilitate investments into China, Asian Infrastructure Investment Bank (AIIB) plans membership expansion and the China Foreign Exchange Trade System (CFETS) starts publishing daily exchange rates for the RMB against the British pound, euro and Japanese yen. Plus, a recap of GlobalRMB’s top stories this week.
The China cross-border interbank payment system (CIPS) may struggle to get a large number of banks to sign up as direct participants, but with new features such as netting set to be added, it will become an essential component of China’s renminbi internationalisation strategy.
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GlobalRMB Panda Bonds league table
|Rank||Arranger||Total Volume Rmb (m)||No. of Deals||Share % by Volume|
|1||Bank of China (BOC)||7,500||5||21.01|
|2||Agricultural Bank of China (ABC)||4,000||2||11.20|
|4||Industrial and Commercial Bank of China (ICBC)||3,500||2||9.80|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||26-Oct-16||China Gas Holdings||China||2,000|
|2||12-Oct-16||The Wharf (Holdings)||Hong Kong||4,000|
|3||10-Oct-16||KWG Property Holding||Cayman Islands||8,000|
|4||29-Sep-16||Agile Property Holdings||Cayman Islands||3,000|
|5||23-Sep-16||Yuzhou Properties||Cayman Islands||3,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Total Volume Rmb (m)||No. of Deals||Share % by Volume|
|2||Bank of China (BOC)||2,631||3||13.50|
|4||Standard Chartered Bank||1,700||2||8.72|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||25-Oct-16||ICBC Tokyo branch||China||500|
|2||20-Oct-16||ICBC Sydney Branch||China||1,200|
|3||08-Sep-16||Haikou Meilan International Airport Investment Ltd||China||525|
|4||08-Sep-16||ICBC Singapore Branch||China||1,600|
|5||02-Sep-16||Central American Bank for Economic Integration (CABEI)||Honduras||1,000|