China’s cross-border interbank payment system (CIPS), launched on October 8, is revolutionising the way payments are made and received in RMB across the globe. The system is just in its first phase, but as it expands its reach, the role of offshore RMB clearing banks will be called into question.
China’s newly launched Cross-border Interbank Payment System (CIPS) is fundamental to the internationalisation of the renminbi as it centralises liquidity and will save costs, says Marcus Sehr, global head of institutional cash, global transaction banking at Deutsche Bank.
Next month sees the launch of the China Europe International Exchange (CEINEX), a joint venture between China and Germany. The exchange will develop and distribute offshore RMB including five new ETFS that are expected go live at the same time as CEINEX.
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China gave a clear signal of its ambitions for the long awaited Cross-Border Interbank Payment System by launching it with a series of debut transactions by China and international banks in at least three different continents. CIPS, which was up and running on October 8, is expected to play a key role in the next stage of RMB internationalisation.
The People’s Bank of China (PBoC) has issued a set of rules for the renminbi Cross-border Interbank Payment System (CIPS) to the first batch of 19 participating banks. According to a copy of the document that GlobalRMB has obtained, the central bank released the rules on September 11 and they are to be applied imminently.
China plans to allow foreign central banks to participate in its onshore foreign exchange market, premier Li Keqiang said in his keynote speech at the World Economic Forum held in Dalian on Thursday. It supports last month’s statement from the People’s Bank of China’s (PBoC) that qualified foreign entities are welcomed in China’s onshore FX market.
The first phase of the China International Payment System (CIPS) will be completed before the end of 2015 in Shanghai, adding a vital new piece of infrastructure to the RMB internationalisation process.
The Society for Worldwide Interbank Financial Telecommunication (Swift) is poised to play an important role in China's upcoming offshore renminbi Cross-border Inter-bank Payment System (CIPS).
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People’s Bank of China (PBoC) has lifted the threshold for multinational corporations (MNCs) to use the cross-border cash pooling scheme across China. The scheme had originally been introduced in the Shanghai pilot free trade zone (FTZ) in early 2014.
Swift RMB Tracker
The renminbi fell back one place to be the fifth most used currency for international payments by value, Swift said in its October 29 report.
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Latest news by market and league table performance
Panda Bonds Top Arrangers
|Rank||Arranger||Share % by Volume|
|1||Bank of China (BOC)||18.86|
|2||Industrial and Commercial Bank of China (ICBC)||14.39|
|3||China Merchants Bank Co||14.21|
|4||China Merchants Securities Co||8.85|
|5||Agricultural Bank of China (ABC)||5.90|
Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $bn||No of issues||Share %|
|1||China International Capital Corp Ltd||3.43||16||14.03%|
|2||China Securities Co Ltd||3.30||5||13.53%|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $bn||No of issues||Share %|
Asian polls & awards
In the final part of GlobalCapital China’s awards announcement, we discuss the key innovation of 2019, and reveal the individual that has made the greatest contribution to reforming and internationalising the Chinese onshore market.
In the second part of GlobalCapital China’s awards announcement, we reveal the winning banks across Panda bonds, G3 bonds and ABS, as well as the best bank for securities services and the most impressive law firm.
In the fourth and final instalment of GlobalCapital Asia’s capital markets awards announcements, find out which firms have been named the Best Asian Investment Bank and the Best Investment Bank in the region for 2019.
GlobalCapital China, previously GlobalRMB, is pleased to announce the winners of its annual capital markets awards, honouring the banks, companies and individuals that have made the biggest contribution to bridging the gap between China’s markets and the rest of the world. In part one of the awards, we reveal the most impressive issuers in the FIG, corporate and SSA categories.
In part three of GlobalCapital Asia's awards results announcements, we reveal the winning bond deals across a variety of categories. In addition, we also name the Best G3 Bond House, Best High Yield Bond House and the winner of the Best House for SRI Financing.