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.
Best of the rest from Sibos
- SEB shifts to sweep up Scandi RMB business
- Corporates hopping on FTZ train despite RMB scare
- The time of RMB is now, says Deutsche’s Robins
- RMB internationalisation needs better onshore-offshore connections, says ICBC Singapore
- Sibos: Treasurers fear for the future
- Sibos: CMB signs MoU with Deutsche for Belt and Road expansion
- Sibos: CIPS enhances China’s connectivity with the global financial system - StanChart
- Sibos: Risk measurement is the biggest hazard to China ABS
- Sibos: Tough climb for market linkages
- Sibos: More Swift-China synergies to come
- Sibos: RMB entry to SDR will smooth China capital account opening, say experts
- Sibos day 1: DBS on the Asian century, BGC talks market disruptors
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).
Asiamoney Cash Management Poll 2015
- Four banks dominate Asia’s largest Cash Management Poll
- Asiamoney Cash Management Poll 2015 - Detailed Results
- Asiamoney Cash Management Poll: The region’s cash commanders
- Asiamoney Cash Management Poll 2015: Asia’s kings of cash
Asiamoney Fixed Income and FX Polls
- ANZ and CIMB dominate Asiamoney’s Fixed Income Poll 2015
- Asiamoney FX Poll results: ANZ and CIMB reign as Asia-Pacific top FX services providers
- Asiamoney FX Poll 2015: Opportunities amid the volatility
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.
Want full access to GlobalCapital?
If you are new to GlobalCapital or you already subscribe to some of our channels you can still easily extend your access.
Take a trial to the entire site or subscribe online to see all our capital markets news, opinion and data sets.
Don't miss out!Free trial
Promoted By Commerzbank
Read the magazine on your mobile device
Latest news by market and league table performance
Panda Bonds Top Arrangers
|Rank||Arranger||Share % by Volume|
|1||China Merchants Securities Co||15.31|
|2||Industrial and Commercial Bank of China (ICBC)||12.35|
|4||Agricultural Bank of China (ABC)||7.60|
|5||China CITIC Bank Corp||6.76|
Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|5||China International Capital Corp Ltd||11,355.46||47||4.96%|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|5||Bank of America Merrill Lynch||13,338.92||85||3.99%|
Asian polls & awards
In part three of our results announcements, we reveal the winning bond deals across a variety of categories. In addition, we also name the Best G3 Bond House, Best Local Currency Bond House, Best High Yield Bond House and the debut winner of the Best House for SRI Financing.
In part two of our results announcements, we reveal the winning equity deals and banks, including the Best Follow-on/Accelerated Bookbuild, Best Equity-Linked Deal, Best IPO, Best ECM Deal and Best ECM House.
GlobalCapital Asia has spent the last two months talking to banks and their clients in a bid to determine the most impressive capital markets transactions and advisers across Asia ex-Japan in 2018. We are pleased to begin our awards announcements in the loan market.
In this third part of the GlobalRMB awards, we present our reasons for choosing the best issuers in the FIG, corporate and SSA categories — and praise the strong performance of one well-known foreign law firm.
In the final article on our GlobalRMB awards, we talk about the key innovation of the year and highlight the individual that has made the greatest contribution to the development of China’s cross-border capital markets.