China

China New Town Development ventured to the international bond market for the first time in its history, pricing a Rmb1.3bn dim sum bond with the backing of China Development Bank (CDB).

The inclusion of the renminbi in the International Monetary Fund's Special Drawing Rights (SDR) currency basket in the next SDR review later this year is by no means a foregone conclusion. But much progress has been made, according to participants at the Offshore RMB conference organised by market body Asifma this week in Hong Kong.

Ocean Wealth, a wholly owned special purpose vehicle of China Orient Asset Management, raised Rmb1.48bn ($243m) on April 28 with a dual-tranche dim sum bond that was secured and backed by loan repayments.

China New Town Development has started its first foray into the offshore renminbi bond (CNH) market on April 28, opening books to a three year Reg S offering.

The Taipei Exchange (TPEx), formerly known as the GreTai Securities Market, is stepping up its efforts to promote itself internationally and to bring the Taiwan RMB-denominated bond market to the attention of global issuers and investors.

Fund managers are increasingly keen on offering their clients exposure to renminbi assets. But with the dim sum market still dogged by illiquidity and small issue sizes, creative thinking is needed.

This week’s official launch of the new free trade zones (FTZ) in the city of Tianjin and the provinces of Guangdong and Fujian has coincided with a new shortening of the negative list that determines which sectors in China are off-limits to foreign investors.

In this round-up, Malaysia and China renew their bilateral swap agreement, Thailand launches RMB clearing services, and the Silk Road Fund makes its first investment into Pakistan.

China's pursuit of more global financial connectivity is a tricky balancing act. Reforms are flowing thick and fast, but the final objective can be hard to fathom. The internationalisation of its currency involves many checks and balances — and as Elliot Wilson writes, there is little consensus on how far, and how quickly, the country wants to move.

The internationalisation of China's economy has long been seen in the context of allowing foreign investors increased access to domestic markets. But the most recent initiatives make clear that this access is a mere stepping stone to another destination. Unleashing Chinese investors onto the world stage is the bigger goal.

With Middle East countries becoming increasingly important trade partners for China, the Gulf region is rapidly assuming a central position in the investment ambitions of Chinese corporates. But the links go both ways, with MidEast companies also stepping up their operations in China. Chris Wright looks at the two regions' growing links.

The decision by the European Central Bank to start quantitative easing has changed the game for European borrowers who want to target an Asian investor base. More are opting to stay away as they seek cheaper funding opportunities at home, but Asia’s local currency markets, especially the offshore renminbi, are starting to get the attention of European financial institutions.