Asia Pacific

The development of offshore RMB markets in Taiwan and Singapore mean that Hong Kong needs to up the ante if it wants to retain its position as the leading market hub.

In this round up of recent offshore renminbi news, China sign swap deal with Brazil, Deutsche Bank revises its forecast for the renminbi and Bank of China HK reports jump in CNH deposits and loans.

Development bank Cabei became the first borrower from Latin America to rely entirely on Asian investors for an offshore renminbi bond on Monday, when it raised Rmb500m ($79.7m) and opened up what funding officials say could become a regular source of funding in the future.

Hotel operator Dorsett Hospitality International raised Rmb850m ($135.4m) in the offshore renminbi bond market this week, finding some of the money it needs to fund future acquisitions.

Debt levels are too high and rising, while stocks and bonds are priced "dangerously high," economist Andrew Smithers argues

The Cyprus bailout has sparked a relief rally, with risk assets doing well, but one strategist sees this as an opportunity to sell

The balance of risks in the offshore renminbi market points to a potentially rising basis risk in the next few months due to sharp yen depreciation, rising dollar strength and inflationary pressures, says the bank.

Japan’s banks are overflowing with deposit funding. Not only do they have little need to venture into the international capital market themselves but they can also easily fund the ambitions of the country’s corporates. That combination has kept issuance volumes depressed, but a number of factors are now converging to make an uptick in activity much more likely — in all asset classes.

A decisive election victory for prime minister Shinzo Abe has paved the way for a ¥10tr stimulus package for Japan’s depressed economy. The reaction has been startling, with growth estimates being rapidly revised upward. But there are challenges that even Abenomics will struggle to tackle.

With bank financing requirements falling and a basis swap that made yen funding tough to justify for those with no need for it, volumes have stagnated in the Samurai market. But the diversity of those accessing the market is encouraging, and could be set to increase.