China

Australia and New Zealand Bank has appointed a new director to its loan syndications team in China.

Singapore and China have announced new initiatives to boost the internationalisation of renminbi (RMB) through the city-state.

China Water Affairs Group has picked one bank to arrange a $100m fundraising, hitting the loan market for the first time in more than a year.

The ability to accurately measure and rate risk is the key obstacle to the development of asset backed securities in China. This is because flawed measurements, produce flawed valuations, which in term infect the macro-economic environment, argues Ann Rutledge, founding principal of Credit Spectrum.

The global financial crisis has accelerated the transition to a multipolar and multi-currency system, with the RMB being one if its new components, according to former Bank of Pakistan governor Yaseen Anwar, now a consultant for ICBC.

DBS Bank is following in the footsteps of its peers with plans to launch a Panda bond this year, several sources have told GlobalRMB. The deal will not only be the bank’s debut in China’s onshore bond market, but also mark the first such trade from Singapore.

China Merchants Bank (CMB) and Deutsche Bank signed a memorandum of understanding (MOU) on global banking services on October 12. The agreement aims to facilitate CMB’s expansion under the Belt and Road initiative by leveraging Deutsche worldwide network and global infrastructure, Tang Zhi Hong, executive vice president of China Merchants Bank, told GlobalRMB.

The public perception of the renminbi has become more sceptical following the events in China’s equity and currency markets over the summer. Although this will create headwinds to the currency’s internationalisation, market participants are confident in China’s ability to overcome them.

The successful launch of the Shanghai-Hong Kong Stock Connect last year is spurring the development of new trading links in Asia. But several obstacles stand in the path of more stock market linkages, according Carol Hsu, Professor in the Department of Information Management, National Taiwan University.

China Construction Bank sealed a successful offshore renminbi bond on October 12, marking the first time it has listed dim sum notes in London. The trade is set to breathe new life into the CNH market, which had been shut for more than two months following a devaluation of the currency.

China is boosting its capital markets collaboration with the UK with Agricultural Bank of China launching a dual-currency, triple-tranche bond on October 13. It would be the second Chinese lender to sell notes in London in as many days, and its offering will also mark the country’s first financial green bond.

China’s newly launched Cross-border Interbank Payment System (CIPS) is set to enhance China’s connectivity with the global financial system by providing a highly efficient platform for cross-border RMB settlement with extended operating hours and bilingual processing capability, says Michael Vrontamitis, head of trade, product management at Standard Chartered.