RMB round-up: Date set for Party congress, Sharjah plans Middle East’s first Panda bond, RMB back as fifth most used payments currency in July

The Communist Party congress is set to kick off on October 18, the emirate of Sharjah plans the Middle East’s first Panda bond issuance, and Swift data says the renminbi was the fifth most used currency for payments globally in July.

  • By Noah Sin
  • 01 Sep 2017
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Regulators:

  • The politburo of the Communist Party of China has announced that the 19th Communist Party congress will open on October 18, Xinhua reported on Thursday. The congress takes place once every five years.
  • The China Securities Regulatory Commission appointed Zhang Shenfeng as assistant chairman on August 30. Before taking the job, Zhang was the chief executive at China Financial Futures Exchange.

Bonds:

  • The government of Sharjah, one of seven members of the United Arab Emirates, is planning to issue a Panda bond, according to an August 31 media report. The deal would be the first offering by a Middle Eastern issuer in China’s interbank bond market, said the report.

RMBi:

  • The renminbi once again entered the world’s top five of most active payment currencies in July, according to SWIFT data’s RMB tracker. The Chinese currency made up 2% of all payments, up 1.98% from June. Meanwhile, RMB payments’ value was down 3.71% in the same period, compared to an average decrease of 4.34% among all payment currencies. The dollar, Euro, pound and yen are ahead of the RMB with shares of 39.83%, 33.34%, 7.31% and 3.15%, respectively. The Canadian dollar now trails the Chinese currency with a 1.85% share.
    SWIFT data also shows that Hong Kong remains the most active offshore RMB market in July, settling 76.66% of all RMB payments outside China, followed with the UK with 5.02% and Singapore, with 4.21%.

Indices:

  • FTSE Russell has added China Vanke, a real estate developer, to its FTSE China A50 Index, which represents the 50 largest A-Share companies in China, the index provider said on August 30.
    FTSE also added Geely Automobile Holdings to its FTSE China 50 Index, a tradable index which captures the largest Chinese stocks listed in Hong Kong.

Hubs:

  • RMB deposits in Hong Kong grew by 1.6% to Rmb534.7bn, according to the Hong Kong Monetary Authority. Meanwhile, total remittance of RMB for cross-border trade settlement went down from Rmb329.6bn from Rmb372.5bn in the same period.
    Singapore's RMB deposits went up 8.7% in the second quarter of 2017 to Rmb138bn, according to data by the Monetary Authority of Singapore. Industrial and Commercial Bank of China Singapore branch, the official clearing bank in the country, also said on August 29 that, as of July, it had cleared RMB transactions worth Rmb170tr.
    The New York branch of China Merchants Bank has been approved by China Foreign Exchange Trade System as a foreign currency lending member in the onshore FX market effective September 12.

FX:

  • The PBoC’s renminbi fix against the dollar was set at 6.5909 this morning, 101bp stronger from Thursday. The NEX CNH benchmark came in at 6.6024 at 4.31pm on Thursday, weaker from 6.5930 on Wednesday.
    The dollar index closed at 92.667 on Thursday, down 0.2% from Wednesday, according to Bloomberg. The Thomson Reuters CNY reference index closed at 95.56 on Thursday, up 0.04% from its previous close.
    The trade-weighted index by CFETS closed on 31 August at 94.38, up 1.76% in the month, while the BIS basket and special drawing rights basket indices finished the month at 95.12 and 95.29, gaining 1.61% and 1.64%, respectively, according to CFETS.
  • By Noah Sin
  • 01 Sep 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