China

The IMF board of directors approved on August 11 a suggestion by IMF staff to extend the current composition of the Special Drawing Rights (SDR) facility to September 2016, the IMF said in an August 19 statement. The timeline for a decision on the possible inclusion of the RMB, however, remains unchanged, with the board set to meet in November.

Weak demand signals from China and increasing currency volatility have extended losses for the copper futures and options market.

Last year's launch of the Shanghai-Hong Kong Stock Connect and the technical challenges that followed it highlight the need for continued harmonisation of market practices, according to Omgeo, a post-trade processing firm.

The idea of China using its own currency to buy and sell commodities on the global market attracts plenty of scepticism. But the Gold Connect that launched in Hong Kong last month and a new trading platform in the Shanghai free trade zone (FTZ) show that China is serious about its plans to make the RMB into a global commodity currency.

Bank of Communications (BoCom) Financial Leasing braved a cautious market on Tuesday August 18 to price a dual tranche trade. The borrower succeeded in making its debut in euros, while strong demand allowed the dollar tranche to come inside its existing curve.

Shanghai Pudong Development Bank and Ping An Bank have been picked as underwriters and mandated lead arrangers to a $1.1bn loan for the take-private of New York-listed Wuxi PharmaTech.

South Africa is experiencing a difficult week in credit markets, with credit default swaps that reference its debt hitting their widest point for two years.

After the uneasy calm that fell over equity markets following China’s devaluation of the renmimbi last week, investors got another rude shock on Tuesday when Shanghai stocks tumbled 6.2%, prompting bankers to mull over the possibility of pulled deals.

Canadian investors are not being put off by China's recent equity and currency volatility. CI Investment, the first Canada-based firm to have obtained a Renminbi Qualified Foreign Institutional Investor (RQFII) licence, has told GlobalRMB that the China is still attractive to those wanting to increase their international exposure.

Some market observers are concerned China’s first margin loan ABS could be sowing the seeds of a new crisis. But it's too early to condemn such a new product — and one that regulators will be watching closely.

The People's Bank of China (PBoC) injected a wave of cash into the Chinese financial system on Tuesday but short swaps remain bid on concerns about further yuan weakness. With the weak economic outlook expected to support receiving from the five year sector, sources predict more curve flattening momentum, writes Deirdre Yeung of Total Derivatives.

Video surveillance solutions provider UNV Digital Technologies filed for a Hong Kong IPO on August 17 with listing tentatively scheduled for the next two to three months.