China

BNP Paribas Securities Services has been mandated by China Universal Asset Management Hong Kong (CUAMHK) to provide custody and fund administration for its debut RQFII Ucits fund.

BlackRock’s iShares division this week launched its MSCI China A Ucits ETF in London, using the Rmb2.1bn ($338m) RMB qualified foreign institutional investors (RQFII) quota the firm got in August 2014. The product, which joins the growing ranks of exchange traded funds (ETFs) based on Chinese securities, will be a further test of international appetite for the China story.

Standard Chartered has appointed Ding Shuang as head of Greater China economic research, luring him from Citi. The bank has also appointed a new Dubai-based global chief economist, Marios Maratheftis.

Central bank reserve managers see the renminbi’s stature as a reserve currency growing to 10% share of global reserves by 2025, according to a survey conducted by HSBC and Central Banking Publications, released on April 13.

This week brought another landmark in the Formosa market, with the first Japanese issuer completing a transaction. Nomura is settling its debut renminbi offering on April 14.

HSBC has appointed a new head of payments and cash managements to its China operations.

Hong Kong Exchanges and Clearing Ltd. has expanded its Chinese business development by opening a mainland division, which it has populated with new senior hires.

The potential inclusion of Chinese A-shares into global market indices is back on the agenda. Market liberalisations in China since the last review may now have made the move a forgone conclusion.

Taiwan’s GreTai Securities Market (GreTai) is aiming in May to launch benchmark yield curves for the Formosa bonds listed on its platform, with 10 firms picked as market makers to quote bid/offer prices, two sources close to the matter told GlobalRMB.

Mainland purchases of Hong Kong H shares exhausted the southbound daily quota of the Shanghai-Hong Kong Stock Connect for the second straight day on April 9. The new enthusiasm among Chinese buyers will be a boon for many, but it is also a sharp reminder of the potential and risks associated with China’s opening.

In this round-up, RMB deposits in South Korea fall again, Australia renews its swap line with China, and the Bank of China cross-border RMB index for February rises despite the Spring Festival holiday.

The People’s Bank of China (PBoC) has unleashed a raft of measures to stimulate borrowing in the mainland, but the benefits are yet to trickle down to smaller credits. This gap offers an opportunity to foreign lenders, and they are increasingly being seen in renminbi syndications onshore, writes Shruti Chaturvedi.