Regulation & Policy - All Articles

  • Hope despite the obstacles: outlook bright for RMB in Korea, says KSD chairman

    It has been six months since South Korea formally became an offshore renminbi hub, with its own official clearing bank. The last year has seen a massive increase in RMB deposits, tripling to about Rmb120bn ($19bn), but Yoo Jaehoon, chairman and CEO of Korea Securities Depository, the country's leading custody and settlement services provider, tells GlobalRMB that the key issue for RMB development in the country remains the expansion of its use in the real economy.

    • 30 Jan 2015
  • RMB round-up: January 30, 2015

    In this round-up, free trade accounts launch in the Shanghai pilot Free Trade Zone (FTZ), authorities announce an imminent expansion of FTZ policies to the entire country, the Bahamas is making a push to become the second RMB hub in the Americas, and ICBC announces big growth in its RMB cross-border business.

    • 30 Jan 2015
  • After a record year, what hope now for dim sum?

    After the boom comes the bust. If 2014 was a banner year for offshore RMB bond issuance, things are not looking too hot for 2015. Just four deals have priced so far, with the volume raised just a quarter of last year. Dim sum bonds have been a key tool of RMB internationalisation, but changing conditions have stripped them of their appeal. It’s time for Chinese authorities to get creative.

    • 30 Jan 2015
  • Mauritius makes an RMB move

    A surge in RMB activity in Africa could be set to get under way soon. The Mauritius central bank recently argued that the country was ready to become Africa’s first RMB hub. Others, such as Kenya and South Africa, have already stepped up their involvement in RMB internationalisation over the past few years via FX reserves and the dim sum bond market. But so far, Chinese regulators have shied away from any official moves towards setting up clearing arrangements.

    • 28 Jan 2015
  • RMB up to fifth in global payments, overtakes Canadian and Australian dollars

    The renminbi became the fifth world payments currency in November 2014, according to new data just released by the Society for Worldwide Interbank Financial Telecommunication (Swift), overtaking the Canadian and Australian dollars.

    • 28 Jan 2015
  • Special Briefing on China market access, Part IV: Shanghai's Free Trade Zone — China’s promised land

    The Shanghai pilot free trade zone (FTZ) initiative provoked an unhealthy mix of early-days chest-thumping by Chinese authorities and dismayed booing on the part of disappointed foreign observers in 2014. In December emotions surrounding the FTZ were finally beginning to quieten down, but then came the announcement of not one, but three new FTZs.

    • 27 Jan 2015
  • Time for China’s domestic players to jump aboard the RMB internationalisation train

    With China's central bank finally starting to use the phrase "RMB internationalisation" to describe its efforts to promote the currency, the process looks set to enter a new stage this year. In contrast to earlier measures, the government's latest initiatives are all about encouraging capital and investment to go out into the wider world. That means it's time for China's domestic players to take a bigger role.

    • 23 Jan 2015
  • RMB round-up: January 23, 2015

    In this round-up, Société Générale opens Shanghai Free Trade Zone sub-branch, CSOP launches an RQFII government bond ETF, and China Construction Bank is likely to be next European RMB clearing bank.

    • 23 Jan 2015
  • Zurich gets RQFII quota, signs MoU on RMB clearing

    The Swiss National Bank announced on January 21 that it had received an Rmb50bn ($8.05bn) RMB qualified foreign institutional investors (RQFII) quota. Switzerland is the fourth European country to receive a quota, bringing the full size of the programme to Rmb820bn.

    • 22 Jan 2015
  • It's official! PBoC wording formalises 'RMB internationalisation' target

    In what was its first ever official use of the term, the People’s Bank of China (PBoC) said in a statement on January 21 that it would promote "RMB internationalisation" in an orderly manner. This is the very first time that the PBoC has used the phrase in one of its formal communications, and the significance of its use has been recognised by market participants as indicating that the Chinese government may be ready for the process to enter a new stage.

    • 21 Jan 2015
  • HKEx's Li puts Stock Connect at heart of financial markets 'Walmart'

    The Shanghai-Hong Kong Stock Connect initiative should be framed within a broader agenda to set up a Walmart-style “mutual market” for China and Hong Kong, said Hong Kong Exchanges and Clearing (HKEx)’s chief executive Charles Li, speaking at the Asian Financial Forum on January 20.

    • 21 Jan 2015
  • MoU signed for Chinese gold market

    The Shanghai Gold Exchange (SGE) and the World Gold Council (WGC) last week signed a Memorandum of Understanding (MoU) on a comprehensive strategic co-operation agreement. The WGC hopes that the joining of hands between the two will support the development of domestic and international gold trading in China by leveraging the opportunity provided by the internationalisation of the Chinese gold market through the Shanghai Free Trade Zone (FTZ).

    • 21 Jan 2015
  • RMB to have another landmark year in Hong Kong, says HKMA

    China’s capital account liberalisations have set the stage for the next chapter of RMB internationalisation and its increased success as an investment currency, said panellists at a session of the 2015 Asian Financial Forum (AFF), currently being held in Hong Kong.

    • 20 Jan 2015
  • Switzerland to become RMB hub with Rmb50bn RQFII quota

    China is set to establish an offshore renminbi hub in Switzerland during a visit by prime minister Li Keqiang on January 20-21, according to domestic Chinese media reports. A Memorandum of Understanding (MoU) of official RMB clearing arrangements is expected, along with a Rmb50bn ($8.05bn) quota for the Renminbi Qualified Foreign Institutional Investors (RQFII) scheme.

    • 19 Jan 2015
  • RMB payments share leaps, says Bank of China

    The latest dataset for Bank of China’s Cross-border RMB Index (CRI) is out, showing a monthly rise of 2.4% in November to 251 points. The result is the second highest on record and also indicates the RMB might have overtaken the Australian and Canadian dollar to be the fifth most used currency for payments.

    • 19 Jan 2015
  • Special Briefing on China market access, Part III: Mutual Recognition, the next big thing?

    The China-Hong Kong Mutual Recognition scheme, which will allow funds in China to team up with funds in Hong Kong to market each other's products in their respective markets, could prove to be a crucial part of China's capital account opening. When it finally launches, it will open up a Rmb30tr ($4.8tr) industry to foreign fund managers. And for domestic buyers, mostly retail, it will create a new offshore channel.

    • 16 Jan 2015
  • Citi offers regulated funds a way into Stock Connect

    Alternative Investment Funds (AIFs) and funds governed by European Union directives on Undertakings for Collective Investment in Transferable Securities (Ucits), can now trade A-shares through the Shanghai-Hong Kong Stock Connect scheme thanks to the development of a solution at Citi's depositary bank business, the firm said on January 16.

    • 16 Jan 2015
  • RMB round up: January 16, 2015

    In this round-up, Taiwan deposits rise 0.5% in December 2014, China cross-border trade settlement is up 10% in the last month and the Stock Connect see two consecutive days of negative net trading this week.

    • 16 Jan 2015
  • Two-way sweeping gets rolling outside FTZ

    Two international banks announced this week that they had helped clients complete two way RMB sweeping transactions outside the Shanghai pilot free trade zone (FTZ). Chinese regulators expanded the pilot scheme to the entire country in November 2014.

    • 16 Jan 2015
  • RQDII gives a vital exit route for China’s renminbi

    The renminbi has grown as an international trade, investment and reserve currency at breakneck speed over the past few years. But in many eyes, the very programmes set up to loosen capital account restrictions are now working against very purpose of creating offshore RMB liquidity – key to the currency’s internationalisation. A couple of developments this year may help.

    • 15 Jan 2015
  • Inclusion of RMB in SDR would accelerate international monetary system reform, says BOCHK

    Ask analysts what would take the international presence of the renminbi to the next level, and many identify the currency's inclusion in the basket that determines the value of the International Monetary Fund's Special Drawing Rights (SDRs). Research this week from Bank of China (Hong Kong) not only said such a move would be a breakthrough but also noted that the lack of full convertibility should not prevent it.

    • 14 Jan 2015
  • StanChart’s RMB index to rise 22% in 2015

    The Standard Chartered (StanChart) RMB Globalisation Index (RGI) reached 2,048 points in November 2014, up 1.2% on the previous month, according to a January 12 report from the bank. StanChart analysts estimate that the index will go up to 2,500 points by the end of 2015, a slower rate of growth than this year’s 500 point rise.

    • 12 Jan 2015
  • GlobalRMB's seven themes you need to think about in 2015

    As the new year begins, GlobalRMB takes a look at seven key themes for RMB internationalisation in 2015. These are the topics and predictions most highlighted to us this week by analysts, economists, strategists, bankers and regulatory experts, and offer an outlook of how the market is expecting the world of the renminbi to shape up in the next 12 months.

    • 09 Jan 2015
  • RMB round-up: January 9, 2015

    In this round-up, Hong Kong RMB clearing is back on the rise, Bank of China receives ISO certification for RMB clearing activities, average daily turnover on the Stock Connect was Rmb5.6bn ($900m) and China’s Xi Jinping pledges $250bn of fresh investment in Latin America.

    • 09 Jan 2015
  • JP Morgan wins Singapore RQFII licence, two UK firms gain quotas

    JP Morgan Asset Management (JPMAM) in Singapore received an RMB qualified foreign institutional investors (RQFII) licence from the Chinese regulator on January 8. The firm joins the rapidly growing ranks of RQFII licensees around the globe.

    • 08 Jan 2015
  • Special Briefing on China market access, Part II: Stock Connect, the best is yet to come

    The Shanghai-Hong Kong Stock Connect initiative opened to much fanfare on November 17, but the enthusiasm quickly gave way to much disappointment as trading volumes collapsed in the following days. It can be tempting to dismiss the initiative as something of a failure, but dig a little deeper and it is clear that the programme’s potential is still untapped. It could well revolutionise the Chinese market in 2015, just as it was supposed to.

    • 07 Jan 2015
  • ICBC Ucits fund sets benchmark for European RQFII sector

    Industrial and Commercial Bank of China's European arm wrapped up a series of investor meetings in December for its debut Renminbi Qualified Foreign Institutional Investor (RQFII) fund, which it had established in Luxembourg in October. As the very first RQFII fund to have 100% exposure to China’s domestic bond market, the benchmark product has attracted big interest from European investors, as well as some concerns about what is still a new concept, the bank has told GlobalRMB.

    • 07 Jan 2015
  • ICBC picked as RMB clearing bank for Thailand; hopes for 24hr clearing in 2015

    The People's Bank of China (PBoC) announced on January 6 that it had approved Industrial and Commercial Bank of China (Thailand) to be the official renminbi clearing bank in Bangkok. The selection is the second in 2015, coming just one day after Bank of China (Malaysia) was awarded the same role in Kuala Lumpur, and adds a new hub to the global RMB map.

    • 06 Jan 2015
  • Bank of China’s offshore RMB quarterly index growth slows in Q3 2014

    The Bank of China’s Offshore RMB Index (ORI) rose slightly to 1.19% in the third quarter of last year, according to a report by the bank. The index pointed to growth in offshore RMB deposits, RMB equity investment and RMB usage in FX trading as key factors behind the increase.

    • 06 Jan 2015
  • Formosa bond ceiling raised to Rmb45bn in 2015

    Taiwan regulators have lifted the ceiling for outstanding Formosa bond issuance, almost doubling the limit from last year's Rmb25bn to Rmb45bn ($7.2bn). The move was announced in late December by the country's Financial Supervisory Commission (FSC).

    • 06 Jan 2015
  • RMB holiday round-up: January 5, 2015

    In this round-up of news over the holiday period, Malaysia gets its own offshore RMB clearing bank, Thailand's central bank renews its RMB swap line, Bank of China and the Stock Exchange of Thailand agree to expand co-operation, Hong Kong RMB deposits rise in November, China started forward and swap trading with three new currencies, and Serbian market participants can now trade RMB in their national market.

    • 05 Jan 2015