RMB round-up: China signs $12.8bn deals with UK, RMB up one in payments, Aberdeen adds Rmb5.3b RQFII quotas

China agreed to $12.8bn of deals with the UK during the British prime minister’s state visit, RMB returns as the fifth most used global payments currency, and Aberdeen Asset Management grabs Rmb5.3bn ($842.8m) new renminbi qualified foreign institutional investor (RQFII) quotas.

  • By Noah Sin
  • 02 Feb 2018
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Trade:

  • Theresa May, the UK prime minister, lined up £9bn ($12.8bn) of trade deals on her state visit to China this week, according to the British government.
    One of these deals was signed between China Development Bank and Standard Chartered, according to a February 1 press release by StanChart. The two parties inked a memorandum of understanding (MoU), committing the Chinese policy bank to Rmb10bn of loans to StanChart over the next five years. The London-based bank will use this facility to support loans that will fund corporate finance projects and trade finance transactions in Belt and Road countries.
    The move could boost the level of RMB financing for the Belt and Road Initiative, said Bill Winters, group chief executive of StanChart.
    “This MoU brings us closer together, and offers more flexibility of funding, especially RMB funding, to support projects along the Belt and Road Initiative routes,” he said.
  • May also announced the launch of an FX service initiated by R5, the FX platform provider, and Shanghai Clearing House, which allows domestic banks in China to access the London FX market. It currently has eight Chinese banks as participants, according to a February 2 press release by R5.
    The new platform will not only help Chinese banks access the liquid London FX market and will also promote the usage of the renminbi outside China, said Jon Vollemaere, CEO of R5.

Payments:

  • The RMB was the fifth most used global payments currency in December 2017, up one place from November, according to Swift’s RMB tracker. The currency made up 1.61% of all global payments in the month.
    Hong Kong remained the largest offshore RMB clearing centre, with 75.68% of RMB clearing outside Mainland China taking place in the city last December, up from 74.05% in the previous month. It was followed by the United Kingdom and Singapore, which took 5.59% and 4.41% of all offshore RMB clearing in December, respectively.

Quotas:

  • By Noah Sin
  • 02 Feb 2018

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 China Merchants Securities Co 14.82
2 Industrial and Commercial Bank of China (ICBC) 12.96
3 CITIC Securities 9.30
4 Agricultural Bank of China (ABC) 8.10
5 China CITIC Bank Corp 7.20

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 15-Nov-18 Sun Hung Kai Properties Hong Kong 1,200
2 12-Nov-18 Global Logistic Properties via Iowa China Offshore Holdings Hong Kong 1,500
3 12-Nov-18 Shenzhen International Holdings China 4,700
4 24-Oct-18 China Gas Holdings China 2,000
5 15-Oct-18 China Power International Development China 2,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 31.88
2 HSBC 19.37
3 Societe Generale 3.97
4 Bank of Taiwan 3.40
4 Cathay United Bank 3.40

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 15-Nov-18 RusHydro Russian Federation 1,500
2 13-Nov-18 Bank of China (Hong Kong) (BOCHK) China 1,000
3 19-Sep-18 Agricultural Development Bank of China (ADBC) China 1,200
4 17-Sep-18 Hitachi Capital (UK) United Kingdom 600
5 13-Sep-18 CIFI Holdings China 1,000