RMB round-up: RMB stays on upswing, RMB trade settlement drops to new low, HKEX to launch RMB options

In this round-up, the RMB is hangs on to its gains in the FX market, China sees RMB trade settlement sink to a four-year low, and Hong Kong Exchange (HKEX) is preps launch of offshore RMB (CNH) options contracts. Plus, a recap of our coverage this week.

  • By Paolo Danese
  • 17 Feb 2017
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This week:


  • The PBoC dollar fix came in at 6.8456 on Friday, a sharp 173bp strengthening on the previous day. The onshore RMB (CNY) spot rate was moving in the same direction, up 0.1% to 6.8633 at 10:50am, according to Wind data. The offshore RMB (CNH) was still trading stronger at 6.8509, flat on the previous close. In the year so far, the CNY has appreciated 1.2%, while the CNH is up 1.7%.
  • The Thomson Reuters CNY index closed at 94.94 on February 16, nearly flat on last week’s close of 94.98. The dollar index meanwhile was trending lower, down 0.2% in the week to 100.52.
  • The director-general of the People’s Bank of China’s international department Zhu Jun said in an interview with China Securities Journal that the country’s sustained current account surplus will help prevent major adjustments in the renminbi. She was addressing concerns about the country’s FX reserves, which fell through the $3tr level last month for the first time in nearly six years. In addition, Zhu said recent measures introduced by Chinese regulators such as increased disclosure requirements on personal FX transaction should not be seen as an expansion of capital controls. Instead, they are merely the implementation of existing regulations.


  • Taiwan’s RMB deposits held up in January 2017, receding by 0.15% to Rmb310.7bn. Offshore banking units saw a 5.6% drop in the deposit base to Rmb33.6bn, while domestic ones saw a 0.5% uptick to Rmb277.2bn.
  • China’s cross-border trade settlement had another bad month, as capital controls and currency volatility continue to scare companies away from using the currency. The total trade settlement volume dropped 13.5% to Rmb322.4bn, the lowest level since February 2013.
  • The Ministry of Commerce’s 2016 review on Friday highlighted the progress China has made in terms of greater economic collaboration with the Arab States. These include getting various Chinese banks to launch renminbi operations, participate in local financing projects, and issue bonds domestically. And the authorities said they are confident such efforts would be further strengthened this year.

Derivatives news:

  • Investors will soon have a new instrument to manage their RMB exposure. The Hong Kong Stock Exchange (HKEX) will be launching a USD/CNH options on March 20 — the first currency option to be traded on the exchange. The contract size of a single option is $100,000 and the settlement price will be based on the USD/CNY (HK) spot rate published by the Hong Kong Treasury Markets Association at or around 11:30am on the expiry day. HKEX said the new product would complement its existing USD/CNH futures, which saw total trading volume rose 105% in 2016 to a record 538,594 contracts worth Rmb370bn ($54bn).

  • By Paolo Danese
  • 17 Feb 2017

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 Bank of China (BOC) 28.62
2 CITIC Securities 21.06
3 China CITIC Bank Corp 9.72
4 China Merchants Bank Co 9.18
5 Industrial and Commercial Bank of China (ICBC) 7.56

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 12-Jan-18 Mitsubishi UFJ Financial Group (MUFG) Japan 1,000
2 12-Jan-18 Mizuho Bank Japan 300
3 10-Jan-18 Daimler Germany 3,000
4 22-Nov-17 Province of British Columbia Canada 1,000
5 15-Nov-17 Daimler Germany 4,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 55.56
2 CLSA 22.22
2 Mitsubishi UFJ Financial Group (MUFG) 22.22

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 17-Jan-18 IL&FS Transportation Networks India 100
2 10-Jan-18 IL&FS Transportation Networks India 900
3 08-Jan-18 Westpac Australia 500
4 30-Nov-17 Ministry of Finance of the People's Republic of China (MoF) China 7,000
5 15-Nov-17 Bank of China Paris Branch (BOC Paris) China 1,000