Asia Pacific

Paris has joined London as the second city in Europe to be given access to the Renminbi Qualified Foreign Institutional Investor (RQFII) scheme. The Rmb80bn ($12.9bn) quota enhances the city’s status as an offshore renminbi hub and opens to door to RMB clearing and settlement in the French capital.

China’s plans to roll out a double-barrel fiscal and monetary stimulus package in the months ahead, in an attempt to stave off a marked slowdown in the world’s second largest economy, could offer a sliver of hope for Latin America’s struggling commodities exporters

The decision by the IDB to site its 2015 annual meetings in South Korea highlights the region’s desire to build on a fast growing trade and business relationship

Leading economists have urged Latin American policymakers not to abandon the economic reforms

The agreement this week between the UK and Chinese central banks on renminbi clearing and settlement in London has set the market alight with antipication of the appointment of a renminbi clearing bank for the City. The frontrunners for the appointment, which UK chancellor George Osborne said would take place soon, are thought to be three of the Big Four Chinese banks.

The CSRC has just announced rules that will allow top tier Chinese companies to issue preference shares. While more clarification is needed, those banks most in need of capital should get ready to launch, as Basel III related supply is likely to far outweigh demand, write Clare Hammond and Rev Hui.

Chinese financial leasing companies could start making their presence felt in the dim sum bond market next quarter after changes this month opened up the funding channel for this group of issuers. But while the sector has a strong growth trajectory, its association with shadow banking may put investors off, writes Isabella Zhong.

Deutsche Bank has appointed Evan Goldstein as global head of renminbi services in what is a newly-created position at the firm. The bank said that the move was in response to what it said was a surge in demand from clients for renminbi services as the internationalisation of the currency continued to gain momentum.

Taiwan is planning a partnership with Singapore and London to establish an offshore renminbi bond issuing and trading platform to promote its CNH bond market, as well as its offshore renminbi hub status, said Soushan Wu, chairman of the Gretai Securities Market, in an interview with GlobalRMB.

The China Securities Regulatory Commission will allow a selection of mainland companies to issue preferred stock, and analysts expect banks to make full use of the rule change, with Rmb150bn ($24.1bn) expected over the next year.

In this week’s round-up of offshore renminbi news, the New Zealand dollar and the Chinese yuan were given approval to begin direct foreign exchange trading this week, Westpac received a NZD/CNY marketmaker licence in China, and the Chinese authorities relaxed rules to allow more foreign participation in its main stock market.

For the last few months, China Development Bank has been planning an offshore renminbi deal in the ASEAN region. Last week it pushed the button, and found demand where it wanted it. But while using allocations to target a location is all very well, the real breakthrough will be the development of a vibrant secondary market.