China

In this round-up, Taiwan RMB deposits hit a new record, Stock Connect northbound trading uses up half its quota six months after launch, the RQFII programme reaches Rmb383bn, the Azeri oil fund and Hungary’s central bank move to invest in China’s bond market, and OTC Clear welcomes new member.

Lenovo Group, a Hong Kong-listed computer technology company, is set to give another boost to the recovering dim sum bond market by launching roadshows for a debut CNH offering next week, market sources have told GlobalRMB. Two other names are also preparing deals.

Index provider FTSE Russell said on May 26 it would allocate a 5% weighting to Chinese A-shares in two new FTSE Emerging Markets indices, with a plan to progressively increase the share to as much as 32%.

China is gearing up to open yet another door to its capital markets, giving the nod for cross-border sale of funds between the world’s second-largest economy and Hong Kong. The move comes amid an unabated rally in both stock markets since April, with bankers expecting the latest announcement to only add more impetus.

Dongfeng Peugeot Citroën Auto Finance Co is tapping the onshore China loan market for an Rmb800m ($129.5m) loan. The financing, which is currently in general syndication, has two foreign banks at the top.

Shanghai Stock Exchange (SSE), China Financial Futures Exchange (CFFE) and Deutsche Börse agreed on Wednesday to launch a joint venture that would allow international investors to trade financial instruments offering underlying exposure to China.

Index provider FTSE Russell said on May 26 it would allocate a 5% weighting to Chinese A-shares in two new FTSE Emerging Markets indices, with a plan to progressively increase the share to as much as 32%.

The renminbi has strengthened its position as the top currency used in Asia-Pacific business with Greater China, accounting for a 31% share compared to 7% in April 2012, according to the latest data released by Swift.

Société Générale joined a select club of non-Chinese banks to sell a Basel III bond in offshore renminbi (CNH) on May 26. The French lender achieved both its cost saving and diversification goals with the 10 year non-call five tier two bond.

Chile has taken the prized spot of being the first Latin American renminbi hub, with a clearing bank, a central bank swap line and an RMB qualified foreign institutional investors (RQFII) quota all being announced on May 25.

Société Générale hopes to save funding cost by turning to the offshore renminbi (CNH) bond market to shore up its Basel III tier two capital adequacy ratio, opening books for a 10 year non call five year trade on May 26.

A ground-breaking and long-awaited mutual fund recognition scheme between China and Hong Kong is set to launch on July 1, with an overall quota of Rmb600bn ($48.4bn) split equally between the two channels.