Asia Pacific

International banks are increasingly setting up in free trade zones (FTZ) in China, keen to expand their RMB business and mainland footprint.

Dubai Gold & Commodities Exchange (DGCX) is planning to offer renminbi derivatives by Q3 2015. The exchange recently signed a memorandum of understanding (MoU) with Bank of China (BoC) and a separate agreement with the China Futures Association (CFA).

Anhui Transportation Holding Group (Anhui Transport) has mandated a sole global co-ordinator to arrange a series of investor meetings ahead of its debut outing to the dollar bond market. Haikou Meilan, meanwhile, is preparing a dim sum deal.

Hong Kong funds face difficulties in taking advantage of the mutual recognition of funds (MRF) scheme that will kick off in one month's time, analysts and market professionals have told GlobalRMB.

Chinese credit rating agency Dagong expects more RMB clearing centres to be established, facilitating RMB clearing not just for trade but a variety of financial products.

After an eye-catching surge of Formosa bond issuance from international issuers in the first few months of this year, Taiwan’s renminbi market has been cooling down since early April. Amid the dearth of issuance, local insurers have told GlobalRMB they would like to see RMB AT1 and tier two offerings come to Taiwan.

The announcement by index provider FTSE Russell to give A-shares a weighting in some of its indices is a further sign that China’s securities are ready to enter the wallets of global investors. And the firm has told GlobalRMB that it expects A-share inclusion in global indices within three years.

In this round-up, Taiwan RMB deposits hit a new record, Stock Connect northbound trading uses up half its quota six months after launch, the RQFII programme reaches Rmb383bn, the Azeri oil fund and Hungary’s central bank move to invest in China’s bond market, and OTC Clear welcomes new member.

Lenovo Group, a Hong Kong-listed computer technology company, is set to give another boost to the recovering dim sum bond market by launching roadshows for a debut CNH offering next week, market sources have told GlobalRMB. Two other names are also preparing deals.

Index provider FTSE Russell said on May 26 it would allocate a 5% weighting to Chinese A-shares in two new FTSE Emerging Markets indices, with a plan to progressively increase the share to as much as 32%.

China is gearing up to open yet another door to its capital markets, giving the nod for cross-border sale of funds between the world’s second-largest economy and Hong Kong. The move comes amid an unabated rally in both stock markets since April, with bankers expecting the latest announcement to only add more impetus.

Dongfeng Peugeot Citroën Auto Finance Co is tapping the onshore China loan market for an Rmb800m ($129.5m) loan. The financing, which is currently in general syndication, has two foreign banks at the top.