Regulation & Policy - All Articles

  • Vanguard surges in RQFII rankings

    The Australian subsidiary of US asset manager Vanguard received an additional Rmb20bn ($3.03bn) quota from the State Administration of Foreign Exchange (Safe) on January 27, making the firm the second largest RMB qualified foreign institutional investor (RQFII) globally.

    • 29 Jan 2016
  • RMB round-up: January 29, 2016

    In this round-up, Chinese premier Li discussed RMB foreign exchange volatility with IMF's Lagarde, the Asian Infrastructure Investment Bank formally launched, a new A-shares exchange traded fund launched in Hong Kong, while a survey found Hong Kong retail investors fear RMB volatility most for 2016, and Tajikistan activated its currency swap line with China. Plus, a recap of GlobalRMB's top stories this week.

    • 29 Jan 2016
  • RMB internationalisation leading to new global monetary order, say experts

    The renminbi's acceptance into the IMF Special Drawing Rights (SDR) basket and Chinese initiatives such as the Asian Infrastructure Investment Bank, are leading to a new monetary order, according to speakers at the Asia-Global Dialogue 2016 conference, held in Hong Kong on January 28.

    • 28 Jan 2016
  • Guidelines urgently needed as Panda pipeline grows

    China’s Panda bond market has been on a tear since it reopened last year with sovereign names, big banks and corporates selling deals. But recent mixed messages from regulators means the market is now in urgent need of formal rules as two major banks are joining the growing pipeline of deals.

    • 27 Jan 2016
  • Updated: MAS revises down RMB deposit figures by 27%

    The Monetary Authority of Singapore (MAS) has published a substantially revised set of data on Singapore’s RMB deposit pool, showing RMB liquidity was lower by as much as 27% than previously stated.

    • 27 Jan 2016
  • RRR is latest weapon in PBoC fight to stop RMB depreciation

    The People’s Bank of China will impose reserve requirement ratio (RRR) on offshore RMB deposits starting from January 25, the central bank said on Monday. Many market participants reckon the move shows the determination of the PBoC to stabilise the renminbi.

    • 19 Jan 2016
  • PBoC was right to intervene in offshore RMB, says HSBC

    China’s central bank drew a lot of criticism this week for its decision to intervene in the offshore renminbi market. But David Bloom global head of foreign exchange strategy at HSBC, says the People’s Bank of China was correct in trying to stop the CNH depreciation.

    • 15 Jan 2016
  • RMB round-up: January 15, 2016

    In this round-up, China's RMB trade settlement touches a new high, Hong Kong RMB clearing grew by 30% in 2015, South Korea's RMB deposits shrank by 75% over the year, Singapore plans closer cross-border RMB co-operation with China, and several Belt and Road initiatives were announced. Plus, a recap of GlobalRMB's top stories this week.

    • 15 Jan 2016
  • Do not adjust your set: time to buy China

    Volatility in Chinese equity and foreign exchange markets is spooking investors but the cheaper RMB and more reasonable valuations for A-shares might provide an ideal entry point for investment into the Mainland.

    • 14 Jan 2016
  • PBoC cuts off flow of RMB to offshore market

    There was shock this week in the offshore market when CNH Hong Kong interbank offered rate (CNH Hibor) reached a record high overnight of 66.8% on January 12. The dramatic move was a result of the People’s Bank of China interventions to stop people shorting the currency, FX traders told GlobalRMB.

    • 13 Jan 2016
  • Second batch of foreign entities gain access to China FX market

    A second batch of six foreign central banks, agencies and supranational institutions have completed registration with the China foreign exchange trading system (CFETS), and gained access to China’s onshore FX market, the People’s Bank of China (PBoC) said in an announcement on January 12.

    • 12 Jan 2016
  • Updated: PBoC goes to war in Hong Kong over RMB rates

    There were dramatic moves in the offshore renminbi market on the morning of January 12 as the spread between onshore RMB (CNY) and offshore RMB (CNH) all but disappeared. And, in a radical development, the People’s Bank of China (PBoC) purchases of CNH in Hong Kong drove the overnight CNH Hong Kong interbank offered rate (CNH Hibor) to a record 66.8%.

    • 12 Jan 2016
  • Market volatility does not equal RMB depreciation, say experts

    There is no denying markets have given the RMB a rough start to the year. But despite the depreciation pressure on the RMB, the real trend seems to be more market-driven volatility rather than persistent weakening, according to some.

    • 11 Jan 2016
  • Basket case: making sense of the RMB chaos

    China’s attempts to allow markets forces to play a bigger role in the currency seemed to have backfired this week with both the onshore RMB (CNY) and its offshore (CNH) counterpart experiencing a tumultuous ride. Further depreciation is expected but the big unknown remains how policy makers will act.

    • 08 Jan 2016
  • China’s longer FX trading hours hampered by lack of access

    China’s onshore FX market has kicked off its new trading hours this week which allow for trading until 11.30pm. By while the regulator’s move is well intentioned, FX traders who are working the new night shift say the market faces some fundamental problems.

    • 08 Jan 2016
  • CIPS stage two needed sooner than later, say experts

    The October 2015 launch of the cross-border interbank payment system (CIPS) opened the door to creating a global RMB payment infrastructure. But, for now, the limited number of participants involved dampens the new infrastructure's potential impact.

    • 06 Jan 2016
  • A-share drop could boost MRF southbound channel

    The sell-off in the A-share market on January 4 might well scare off Hong Kong investors from buying Chinese securities via the new Mutual Recognition of Funds (MRF) scheme, but retail investors in China might now have increased appetite for offshore investments available via the MRF’s southern channel, according to market participants.

    • 05 Jan 2016