China policy round-up: PBoC vows clearer signals, CSRC puts green finance on agenda, FTZs get boost from central government

China’s central bank commits to better communications with market participants, the China Securities Regulatory Commission says it will do more to support green development in the capital markets, and the government announces upgrades for three free trade zones.

  • By Noah Sin
  • 25 May 2018
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The People’s Bank of China said this week that it wants to improve its communication with market participants in order to avoid misinterpretation of its policies.

In a circular published on its website this week, the PBoC said officials should actively participate in press conferences and engage in media interviews. When explaining complex policies, officials should use simple language so the public can fully grasp the message.


China will more actively use its capital markets to promote green development, the China Securities Regulatory Commission said in a May 21 statement.

The watchdog said it will look into introducing an Environmental, Social and Governance (ESG) disclosure system for listed companies, asking them to provide more information on what they are doing to protect the environment.

ESG will also be considered when the CSRC is reviewing applications for IPOs, refinancings and M&A. Furthermore, the regulator will expand the development of green bonds and study the possibility of launching green products such as carbon emissions futures, it said.


The State Council has released new measures to boost RMB business in three FTZs — Fujian, Guangdong and Tianjin — as part of an effort to further liberalise the pilot zones.

The government said qualified multinational companies in the Fujian FTZ can start applying for cross-border two-way RMB capital pool business based on their needs. It will encourage institutions from Guangdong, Hong Kong and Macau to set up overseas RMB funds in the Guangdong FTZ to provide capital for Chinese corporations expanding abroad.

The State Council will also allow foreign institutions and enterprises to issue RMB bonds in the Tianjin FTZ, in order attract central banks, sovereign wealth funds and other investors in Belt and Road countries to invest in onshore RMB assets.


The State Bank of Pakistan has renewed its bilateral local currency swap agreement with the PBoC, the Chinese central bank said in a May 24 announcement. The swap line will be Rmb20bn ($3.13bn), up from Rmb10bn, and is valid for three years.


Germany should make the most of China’s latest efforts to reform and open up its economy, president Xi Jinping said to German chancellor Angela Merkel on Friday, according to state media. The Chinese leader said the two countries should jointly expand third-party markets, and cooperate more closely in industrial development, with a focus on innovation.

  • By Noah Sin
  • 25 May 2018

GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 China Merchants Securities Co 14.44
2 Industrial and Commercial Bank of China (ICBC) 11.65
3 Bank of China (BOC) 10.33
4 CITIC Securities 8.41
5 Agricultural Bank of China (ABC) 7.17

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 10-Jan-19 Beijing Enterprises Water Group China 2,000
2 18-Dec-18 Bank of China Group Investment China 2,000
3 17-Dec-18 Hungary Hungary 2,000
4 06-Dec-18 China Gas Holdings China 1,300
5 27-Nov-18 Daimler Germany 4,000

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 30.97
2 HSBC 18.82
3 Societe Generale 3.85
4 Bank of China (BOC) 3.68
5 Bank of Taiwan 3.30

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 03-Dec-18 Huzhou Communications Investment Group China 500
2 22-Nov-18 Bank of China Tokyo Branch (BOC Tokyo) China 800
3 15-Nov-18 RusHydro Russian Federation 1,500
4 13-Nov-18 Bank of China (Hong Kong) (BOCHK) China 1,000
5 19-Sep-18 Agricultural Development Bank of China (ADBC) China 1,200