RMB round-up: CBRC signals stricter regulations, China reports 6.8% GDP growth in Q3, US says China is not a currency manipulator

The head of China Banking Regulatory Commission (CBRC) says financial regulations in China will become stricter in future, the Chinese economy grows by 6.8% in the third quarter, the US backtracks from labelling China a currency manipulator ahead of president Donald Trump’s visit to China.

  • By Noah Sin
  • 20 Oct 2017
Email a colleague
Request a PDF

Our most recent stories:

China to reset country’s bond curve with new deal

PBoC’s Zhou: No quick change to RMB trading band

China CDS market opens to foreign banks

Xi: Give markets bigger role in RMB exchange rate

Economic growth no guarantee of RMBi success, says Swift

Time to let the barbarians through the gate

Don’t be surprised by renminbi weakness

GLP eyes long term funding with interbank Panda

Regulators:


  • Financial regulations in China will be stricter in future as regulators seek to control financial risk and maintain stability, Guo Shuqing, chairman of CBRC, said on the sidelines of the 19th Communist Party Congress on October 19.
    “The trend points towards stricter financial regulations, strict implementation of the law, rules and discipline,” he said.
  • Guo also highlighted non-performing loans (NPLs) as a major risk to the stability of the Chinese banking sector.
    “This is a very serious problem,” said Guo. “We need to fully expose these NPLs, strengthen the way we do it and digest [NPLs] in a timely manner… Only then can we maintain the banking industry’s healthy development.”


Economy:

  • The Chinese economy grew by 6.8% in the third quarter, according an October 19 notice published by the National Bureau of Statistics.

FX:

  • Chinese banks made a $300m net purchase in FX in September, which represented an uptick from a net sales of $3.8bn in August, according to figures released by the State Administration of Foreign Exchange on October 19.
  • Bank of China (Hong Kong) has been approved by CFETS to conduct transactions in currency swaps and options in the interbank market, effective October 20.

Trade:


  • The US has refrained from naming China a currency manipulator, according to an October 17 report by the Treasury. But the Treasury has kept China on its monitoring list, alongside Japan, Korea, Germany, and Switzerland, arguing that US businesses are still hampered by unfair competition from its Chinese peers.
    “The Treasury remains concerned by the lack of progress made in reducing the bilateral trade surplus with the US,” said the report. “Further opening of China’s economy… would provide more opportunities for American firms and workers to compete in Chinese markets and facilitate a more balanced economic relationship between the US and China.”
  • The comment came after the White House announced on October 16 that Trump is set to visit China on November 8-10, and hold a series of bilateral meetings with his counterpart, Xi Jinping.


  • By Noah Sin
  • 20 Oct 2017

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 Industrial and Commercial Bank of China (ICBC) 35.00
2 China CITIC Bank Corp 30.00
3 China Merchants Securities Co 17.00
4 HSBC 5.00
4 Standard Chartered Bank 5.00

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 09-Feb-18 Sino-Ocean Group Holdings Hong Kong 3,000
2 06-Feb-18 Global Logistic Properties via Iowa China Offshore Holdings Hong Kong 1,200
3 05-Feb-18 China Merchants Port Holdings (CMP) Hong Kong 500
4 01-Feb-18 The Emirate of Sharjah United Arab Emirates 2,000
5 25-Jan-18 Sino-Ocean Group Holdings Hong Kong 3,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 64.14
2 Deutsche Bank (Taipei) 7.95
3 CLSA 7.22
3 Mitsubishi UFJ Financial Group (MUFG) 7.22
5 CTBC Bank (formerly Chinatrust Commercial Bank) 2.85

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 22-Feb-18 Far East Horizon China 630
2 08-Feb-18 Sinochem Offshore Capital Company China 1,000
3 30-Jan-18 Rabobank The Netherlands 500
4 17-Jan-18 Asian Development Bank (ADB) Philippines 100
5 17-Jan-18 Export-Import Bank of Korea (Kexim) South Korea 270