Latest RMB investment news
A new dawn has broken for RMB business in Japan, as the country prepares to launch its first RMB clearing bank and a local currency swap line with China. For now bankers are focusing on new renminbi investment quotas, which could mobilise the vast pool of Japanese household assets to tap onshore Chinese securities.
Almost half of the international investors surveyed by the Asian Corporate Governance Association (ACGA) disagree with MSCI’s decision to include A-shares in its emerging markets (EM) index. The survey shows that foreign investors continue to face obstacles when investing onshore.
Foreign investors are holding more Chinese bonds than ever before, and they are ready to grab even more, according to a recent survey by S&P. Sentiment is likely to stay bullish as China’s monetary policy diverges from the US and the onshore market continues to grow, say analysts.
A new group of investors is set to arrive in China's bond market as index providers prepare to include Chinese bonds in their benchmarks. But these new entrants will likely follow the path set by institutional investors in China, sticking with government bonds and short-dated paper, according to BNP Paribas.
China's onshore dollar bond market could provide an alternative to quota-based outbound investment schemes, allowing banks a novel way of deploying their dollar deposits, according to a senior trader at BNP Paribas.
In the second of a four-part series of articles on China’s financial transformation, GlobalRMB considers the nation’s banking reforms, which will allow a horde of foreign banks to gain more traction in the country. At the same time, Chinese banks are moving in the opposite direction.
China’s startling transformation continued last year, with the opening up the domestic bond market to foreign investors, the rise in renminbi volatility, and an all-important party meeting that cemented the power of Xi Jinping. Over the course of four in-depth articles, GlobalRMB will examine the key themes that will define this transformation in 2018. First up: the move to bring more foreign bond investors into the country.
The week in renminbi: China sets date for oil futures launch, Philippines wins approval for Panda debut, offshore investors hold more Chinese bonds
China unveils plans to kick start RMB-denominated oil futures next month, the Philippines gets regulatory greenlight for its Panda bond issuance, and foreign ownership of bonds in the interbank bond market rises again in January.
Renminbi bullishness has served Luxembourg well. The tiny country has enjoyed substantial China-related fund flows in 2017, largely thanks to a wider offering of investments, Marc Andre Bechet, director of legal and tax at the Association of the Luxembourg Fund Industry (Alfi), told GlobalRMB.
China and the UK have still not announced the launch date of the London-Shanghai Stock Connect, but international investors are already positioning themselves to get the most out of the new link, Gary O’Brien, a senior custody banker at BNP Paribas, told GlobalRMB.
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Latest news by market and league table performance
Panda Bonds Top Arrangers
|Rank||Arranger||Share % by Volume|
|1||China Merchants Securities Co||19.83|
|2||Industrial and Commercial Bank of China (ICBC)||14.01|
|4||Agricultural Bank of China (ABC)||10.78|
|5||China CITIC Bank Corp||9.70|
Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|5||China International Capital Corp Ltd||9,472.18||34||4.96%|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|4||Bank of America Merrill Lynch||11,915.50||74||4.58%|
Asian polls & awards
GlobalCapital Asia is pleased to invite pitches for our annual capital markets and investment banking awards, rewarding the most impressive transactions and investment banks of 2018.
GlobalCapital announced the winners of its Sustainable and Responsible Capital Markets Awards 2018 in Amsterdam on Tuesday evening. This year’s two sovereign debut green finance issues, from Indonesia and Belgium, won Deals of the Year in their regions, and there were double laurels for Danone, in both the bond and loan markets.
GlobalRMB is pleased to announce the winners of its inaugural awards, honouring those banks, companies and individuals that have made the biggest contribution to bridging the gap between China and the rest of the world.
The nominations for GlobalCapital's Sustainable and Responsible Capital Markets Awards 2018 have been revealed, as a result of our worldwide market poll, conducted in July.
After a year of burgeoning growth and change in green, social and sustainability bond issuance, with huge acceleration in green loans, GlobalCapital today invites you to vote in its third Awards poll for this market.