Asia Pacific

Four fifths of corporate respondents to a new survey still don’t have a clear understanding of the potential of the RMB as a trade currency, according to a new study commissioned by international law firm Allen & Overy (A&O).

The Singapore Exchange and the Bank of China International Holdings have renewed a commitment to collaborate on market expansion of the renminbi.

Shenzhen Qianhai Financial Holdings has mandated a legion of banks to arrange investor meetings ahead of its maiden offshore renminbi-denominated (CNH) bond.

In this round up, China cross-border RMB trade settlement hits new historical record in March, Hong Kong sees a 31% increase in RMB clearing in the same month, the Moscow Exchange sees record RMB/RUB FX swaps turnover, CCB is launching new subsidiaries in five overseas markets, and RMB clearing officially launches in Malaysia and Qatar.

Hong Kong will preserve its first mover advantage as an RMB hub on the back of its liquidity and proximity to China, but product development will be its key challenge, industry experts say.

BNP Paribas Securities Services has been mandated by China Universal Asset Management Hong Kong (CUAMHK) to provide custody and fund administration for its debut RQFII Ucits fund.

BlackRock’s iShares division this week launched its MSCI China A Ucits ETF in London, using the Rmb2.1bn ($338m) RMB qualified foreign institutional investors (RQFII) quota the firm got in August 2014. The product, which joins the growing ranks of exchange traded funds (ETFs) based on Chinese securities, will be a further test of international appetite for the China story.

Standard Chartered has appointed Ding Shuang as head of Greater China economic research, luring him from Citi. The bank has also appointed a new Dubai-based global chief economist, Marios Maratheftis.

Central bank reserve managers see the renminbi’s stature as a reserve currency growing to 10% share of global reserves by 2025, according to a survey conducted by HSBC and Central Banking Publications, released on April 13.

This week brought another landmark in the Formosa market, with the first Japanese issuer completing a transaction. Nomura is settling its debut renminbi offering on April 14.

HSBC has appointed a new head of payments and cash managements to its China operations.

Hong Kong Exchanges and Clearing Ltd. has expanded its Chinese business development by opening a mainland division, which it has populated with new senior hires.