China market round-up: PBoC sells bills in Hong Kong, foreign currency reserve rises, SSE launches English version of Star Market webpage
In this round-up, the People’s Bank of China (PBoC) sold Rmb30bn ($4.3bn) of central bank bills in Hong Kong, China’s foreign reserves grew slightly and the Shanghai Stock Exchange (SSE) took an important step to improving foreign participation in its Star market.
The PBoC successfully sold Rmb30bn of central bank bills in Hong Kong on Thursday. This is the seventh time the central bank sold bills in Hong Kong, a tradition it started in November 2017.
The Rmb20bn three-month tranche was priced at 2.9% and the Rmb10bn one year bills were also priced at 2.9%, according to an announcement from the Hong Kong Monetary Authority.
China’s foreign reserve holdings rose slightly by $12.7bn to $3.11tr in October, the State Administration of Foreign Exchange announced on Thursday.
The website includes listed company information, notices from the stock exchange and trading regulation updates. The development aims to encourage foreign investors to participate more in the Star Market.
China has officially kicked off its research of 6G telecoms technology, the state-owned Science and Technology Daily reported on Thursday.
HSBC Global Asset Management launched the HSBC China Government Local Bond Index Fund on Tuesday, according to a press release. The fund will offer investors a cost-efficient way to access China’s government bond market. It will track the performance of the Bloomberg Barclays China Treasury and Policy Bank 9% Capped Bond Index.
Deutsche Bank has linked WeChat to its Symphony platform, an internal messaging system, according to a Wednesday press release.
The WeChat Symphony solution will allow the bank to communicate with Asian clients, especially Chinese ones, in real-time, according to the release. The German bank’s corporate clients will soon be able to use the solution to complete steps in the FX trading process such as obtaining a RMB exchange rate.
By the end of September, Chinese equities held by foreign investors were at a record high of Rmb1.77tr. Foreign holdings of Chinese equities have risen for four straight months, Reuters reported, citing the latest data from the Chinese central bank.
On the bond side, Tradeweb’s Bond Connect platform saw an average daily volume (ADV) in Chinese bonds of $1.2bn in October, a 171.7% increase year-over-year and reaching the platform’s second-best ADV performance since the launch of Bond Connect in July 2017, according to a Thursday report.