China

The Shanghai Hong Kong Stock Connect is set to see trading volumes grow further on the back of a new system that will further address the risks arising from its pre-delivery check requirements.

In this round-up, RMB clearing in Hong Kong and RMB trade settlement in China fall in February, Taiwan RMB deposits rise to a record, Suriname gets an RMB swap line, and the Shanghai International Energy Exchange plans to allow foreign investors in the crude oil futures domestic market.

BPCE made its debut in the offshore renminbi market on Wednesday, pricing a 10 year non call five tier two bond. The French lender joined a series of non-Chinese banks that have tapped the dim sum bond market to beef up their Basel III tier two capital buffers.

Italian lender Intesa Sanpaolo, the second largest by assets in the country, closed its first Formosa deal on March 13, a 5.25% three year bond that raised Rmb425m ($67.9m).

BPCE made its debut in the offshore renminbi (CNH) market on March 18, pricing a 10 year non call five trade. The transaction meant the French lender joined a series of non-Chinese banks that have tapped the dim sum bond market to beef up their Basel III tier two capital buffer.

The development of free trade zones is picking up pace with the Guangdong pilot area expected to open for business as early as March 18 and at least two more to follow soon. The launches come as new measures regulating offshore funding for entities in the Shanghai FTZ are being tested out.

France’s BPCE has begun taking orders for its Basel III complaint tier two debt in the offshore renminbi (CNH) market, opening books to what looks to be its debut dim sum bond on Wednesday. If it goes ahead with its plan, it will be the fifth non-Chinese bank to tap the CNH market to boost its Basel III tier two capital buffers.

The People’s Bank of China (PBoC) has set an initial timetable for the launch of China’s Cross-border Inter-bank Payment System (CIPS), according two sources close to the matter. GlobalRMB understands seven international banks — ANZ, BNP Paribas, Citi, DBS, Deutsche Bank, HSBC, Standard Chartered — are among the 19 firms selected for first stage testing.

The flurry of international financial names tapping the Formosa market is showing no signs of letting up. Crédit Agricole and Lloyds Bank are marketing their debut renminbi offerings in Taiwan, two sources close to the deals have told GlobalRMB.

Italian lender Intesa Sanpaolo, the second largest by assets in the country, closed its first Formosa deal on March 13, a 5.25% three year bond that raised Rmb425m ($67.9m).

Export Development Canada returned to renminbi on Monday, using the medium term note format to print its largest ever deal in the currency.

It’s been three months since China officially launched its renminbi-denominated qualified domestic institutional investor (RQDII) scheme. Expectations had seemed high, but activity has been muted. For this year at least, RQDII looks set to be a mere dessert for China’s domestic investors rather than any main course.