RMB round-up: Shanghai FTZ introduces e-warrants, Macau’s RMBi push, new RQFII quotas
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RMB round-up: Shanghai FTZ introduces e-warrants, Macau’s RMBi push, new RQFII quotas

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In this round-up, the Shanghai Free Trade Zone introduces electronic warrants to facilitate cross-border payments for commodity companies, Macau gets high level backing for its renminbi ambitions and new RQFII quotas for Thailand and Luxembourg. Plus, a recap of our coverage this week.

FTZ news:

  • The Shanghai Free Trade Zone is piloting an online cross-border financing and payment platform that will see commodity companies registered in the zone use electronic warrants (e-warrants) instead of physical documents. The Cross-Border Commodities Financial Services Platform will match companies to commercial banks for lower interest rate trade loans, and will help to curb the risks of fake warrants and reduce inefficiencies generated by excessive paperwork. COMMIN, Bank of Shanghai, CIMB, DBS, Mastercard and ValuePay signed a strategic partnership with the platform on October 12.

  • In more FTZ news, global law firm Hogan Lovells has formed an association with Fujian Fidelity Law Firm to set up shop in the Shanghai FTZ. “We see the association as a value driver for many of our clients whose needs are increasingly complex in this market,” said Patrick Sherrington, Asia Pacific and Middle East regional managing partner at Hogan Lovells. This is only the third international law firm to enter into an association in the Shanghai FTZ.

Hub news:

  • Chinese premier Li Keqiang has thrown his weight behind Macau’s efforts towards the renminbi internationalisation process. Li said during a three-day visit to Macau this week that policies are in place for the city to become a RMB clearing centre for Portuguese-speaking countries, as well as a service platform for economic and trade co-operation between the two sides. The official RMB clearing bank in Macau is Bank of China.

RGI Index:

  • Somewhat tardily, Standard Chartered unveiled the August results of its Renminbi Globalisation Index (RGI) this week. And it was more or less or the same story with the index closing August at 1,929 – the same level as in June and July. While the index remained unchanged, a closer look at the breakdown saw that the drag from shrinking CNH deposits intensified in August. However, that was offset by a rebound in outstanding dim sum bonds – the result of a lighter redemption schedule.

RQFII news

  • The list of renminbi qualified institutional investor (RQFII) names keeps getting longer with two more joining in September. Kasikorn Asset Management becomes the first from Thailand to receive a RQFII quota and is joined by Carne Global Fund Managers (Luxembourg).

Our stories this week:

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