Asia Pacific

The development regulator has finally issued its long-awaited dim sum quotas for state-owned enterprises. But its system lacks efficiency at a time when Chinese SOEs should lead the market.

Bank of China has launched into syndication the first offshore renminbi loan to reference the unified CNH Hibor — which came into force in June — for a subsidiary of China Longyuan Power Corp. But in order to protect banks from fluctuations in the new interbank rate, the deal’s margin comes with a floor, writes Lorraine Cushnie.

Bank of China has launched into syndication the first offshore renminbi loan to reference the unified CNH Hibor — which came into force in June — for a subsidiary of China Longyuan Power Corp. But in order to protect banks from fluctuations in the new interbank rate, the deal’s margin comes with a floor.

After roadshowing nearly four months ago, New Zealand’s ASB Bank finally took the plunge and opened books for a €500m five year deal on Thursday. Despite a high rating and fair spread, the deal competed head on with Banca Carige (see other story) and found only a tepid investor response. At the same time, Canadian Imperial Bank of Commerce opened books for a long three year denominated in Aussie dollars.

China will liberalise rules on renminbi-denominated bond issuance, investment, interest rates and cross-border transactions by 2020 to bolster the CNY’s case to be a global reserve currency, says Standard Chartered.

The introduction of automated two-way sweeping in the Shanghai free trade zone could see onshore/offshore renminbi lending rates converge by 100 basis points.

In this week’s round up of offshore renminbi news, London bolsters its role as an offshore renminbi hub, the European Central Bank, Iceland and Indonesia get swap lines, and Thailand seeks a RMB clearing bank.

China Longyuan Power Corp has launched a Rmb1.7bn ($278m) three year offshore renminbi loan into general syndication.

The World Bank's investment arm needs to get its mojo back – and help emerging countries develop their local capital markets

Russia has had a bad few months. There are signs that the economy is growing again – but not at a rate that will make everyone happy