RMB round-up: Two state banks hire new chairmen, BOCHK AM receives first QFII quotas, China restricts SOE overseas investment

Bank of China and China Construction Bank have picked new chairmen, BOC’s asset management arm received its first batch of qualified foreign institutional investor (QFII) quotas, and the Ministry of Finance published new guidelines to restrict foreign investments by state-owned enterprises.

  • By Noah Sin
  • 04 Aug 2017
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Our most recent stories:


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People and markets:

  • Two state-owned Chinese banks appointed new chairmen this week. Tian Guoli stepped down from Bank of China’s chairmanship to take up the equivalent role at China Construction Bank, where he worked before joining BOC, according to an August 3 Xinhua report. BOC replaced Tian with Chen Siqing, according to an August 2 statement by BOC. Chen previously served as BOC’s president.

Quotas:

  • Bank of China Hong Kong Asset management received its first batch of QFII quotas in July, worth $500m, according to figures released by the State Administration of Foreign Exchange (Safe). The asset manager was the sole recipient of QFII quotas in July.

Meanwhile, only Rmb4.46bn ($664.4m) of renminbi QFII (RQFII) quotas were given out in July, Agricultural Bank of China International Asset Management was the sole recipient, which put the asset manager’s total amount of quotas at Rmb9.76bn.

Regulators:

  • The former assistant of the chairman of China Banking Regulatory Commission has been put under investigation for alleged corruption, according to the Central Commission for Discipline Inspection on August 1. The statement accused Yang of taking bribes and abusing his position to promote his son’s business. CBRC endorsed the decision to investigate Yang on the same day.

Investment:

  • China has published new guidelines to regulate SOEs’ overseas investment, according to the MoF on August 2. The new guidelines, which came into force on August 1, require SOEs to conduct feasibility studies before investing overseas, including through M&A, joint venture and equity participation. An MoF spokesperson said the new guidelines will help tackle the problems of poor profitability and low returns on investment, as well as helping reduce SOEs’ financial risk.
Trade:
  • Qian Keming, vice minister of commerce, told Chinese media on August 1 that China and Mongolia have agreed to conduct a feasibility study for establishing a free trade zone. Qian noted that the agreement demonstrates that relations between the two countries are strengthening.

Belt and Road:

  • Industrial and Commercial Bank of China (ICBC) has been picked as the coordinator for market development in Belt and Road countries by Hunan Construction Engineering Group Corporation (HNCEGC), according to an announcement by ICBC on August 1.

ICBC will help HNCEGC with resource coordination and financing in Belt and Road projects, according to the announcement, which also noted that HNCEGC will use its subsidiary, Zhongxiang Overseas Construction and Development, as its platform for resource allocation and asset-backed securitization globally.

Hubs:

  • The Hong Kong Monetary Authority's Infrastructure Financing Facilitation Office (IFFO) added 13 partners on August 2, including Crédit Agricole, Deloitte China, Ernst & Young, Japan Bank for International Cooperation, Legg Mason Global Asset Management, Malayan Banking Berhad and Morgan Stanley.

FX:

  • The People’s Bank of China’s renminbi fix against the dollar was set at 6.7132 this morning, 79bp stronger from Thursday. In the spot market, the CNY was trading at 6.7195 as of 12.06pm, with the CNH at 6.7236, down 0.03% and up 0.09% from their previous close, respectively, according to Bloomberg data.

The dollar index was trading at 92.768 as of 11.49am, down 0.08% from the previous close, according to Bloomberg. The Thomson Reuters CNY reference index closed at 93.96 on Thursday, up 0.09% from its previous close.

The trade-weighted index by CFETS closed at 92.75 on July 31, which marked a monthly fall of 0.58%, with the BIS basket and special drawing rights basket closing the month at 93.61 and 93.75, down 0.68% and 0.46% in the same period, respectively, according to CFETS.
  • By Noah Sin
  • 04 Aug 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 22-Nov-17 Province of British Columbia Canada 1,000
2 15-Nov-17 Daimler Germany 4,000
3 13-Oct-17 Global Logistic Properties Singapore 1,000
4 19-Sep-17 Skyworth Digital Holdings China 2,000
5 14-Sep-17 Bank of China (Hong Kong) (BOCHK) China 9,000

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