China

In this round-up, Singapore RMB deposits reach a new record while Hong Kong RMB deposits are slightly down in January, Suriname is to launch RMB trade settlement, Bank of Korea gives tax incentives to won-RMB direct trading, and ICBC launches RMB settlement for commodities.

Chinese authorities are planning to compete with a new London gold fix with an RMB-denominated benchmark, as precious metals traders warm up to using the currency.

BNP Paribas and Commonwealth Bank of Australia (CBA) became the third and fourth non-Chinese banks to issue Basel III compliant tier two debt in the offshore renminbi market this week.

Commonwealth Bank of Australia (CBA) became the fourth non-Chinese bank to issue a Basel III tier two bond in the offshore renminbi (CNH) market. Although it wasn't able to tighten guidance, the Australian bank took advantage of favourable renminbi-dollar swap rates and managed to save cost.

There is no sign that the Formosa bond bandwagon is taking a break, with Macquarie pricing its debut renminbi-denominated bond in Taiwan, and Hana Bank adding another Korean name to the list of international issuers in the market. Macquarie’s deal also marked the first Australian issuer of a Formosa bond.

BNP Paribas has become the third non-Chinese bank to issue a Basel III bond in the offshore renminbi (CNH) market. On the back of a big order book from high quality investors, not only was it able to increase the size but the new trade also came inside its dollar and euro tier two curves.

There are signs that the pace of RQFII quota approvals is picking up, even though the volume of quotas handed out is still lagging the pace seen until the fourth quarter of 2014. A tax bill of as much as $4bn could also spoil the RQFII party, but the Stock Connect could be set for a boost as European Ucits funds get the green light to participate.

As the first Thai bank enters the offshore RMB bond market, Thai regulators are keen to attract Chinese corporates to its capital markets.

TMB Bank priced the first dim sum bond out of Thailand on March 2, raising Rmb600m ($97m) with a three year offering.

China-Singapore Suzhou Industrial Park Development Group (CSSD) is eyeing the first renminbi bond from an issuer in the Suzhou Industrial Park (SIP), a China-Singapore joint venture area. But after more than a year of preparation, the deal faces two issues that have delayed its final launch, two sources have told GlobalRMB.

Thailand’s TMB Bank is set to end a nine year absence from the international bond market having started receiving bids for an offshore RMB (CNH) bond on March 2. If successful, TMB could become the first Thai issuer to print in the currency.

China plans to allow its corporates to issue renminbi bonds in jurisdictions all over the world to support their cross-border funding, an official at the People's Bank of China (PBoC) told a conference in Beijing.