China

France's landmark RMB clearing house could start operations as early as the start of 2015, according to Europlace CEO Arnaud de Bresson. The structure is set to offer strong competition to Frankfurt and London in their ambitions to become Europe’s principal renminbi business hub, he said.

Seven banks have been designated as Primary Liquidity Providers (PLPs) for the offshore renminbi market in Hong Kong by the Hong Kong Monetary Authority (HKMA), the regulator said on November 3. The designation will allow the PLPs access to a dedicated repo facility of Rmb2bn ($327m) from the HKMA, to facilitate more efficient liquidity management and promote Hong Kong as a global RMB hub.

Market participants are bracing themselves for an onslaught of bank capital deals in the coming weeks after another member of China’s big four banks – China Construction Bank (CCB) – announced it will be meeting investors for a CNH tier two trade.

China’s appetite for commodities and its rapid push for RMB internationalisation is resulting in an expansion of the offering for RMB-denominated commodities and derivatives products, such as the upcoming base metals mini futures contracts on the Hong Kong Stock Exchange (HKEx)-owned London Metal Exchange (LME) and the September launch of the international board of the Shanghai Gold Exchange.

As the Canadian financial sector and provinces strive to create a North American renminbi hub within the sovereign’s borders, SSA issuers from the country have shown their support for the currency by returning to the dim sum market with a bang.

Asian Development Bank brought its first dim sum in four years on Thursday, hot on the heels of a private placement in the format from Export Development Canada — its second offshore renminbi deal ever. The trades follow a dim sum from Province of British Columbia earlier in the week.

Canada’s financial sector is lobbying for a $30bn swap line with China and an Rmb80bn ($13bn) RQFII quota. Alongside the country’s provincial governments, the industry has been making a strong case for why Canada would strongly benefit from the establishment of a formal RMB hub in the country. This week's pricing of a second offshore RMB bond by the government of British Columbia (BC) may well prove to be the tipping point.

Limited dim sum supply in recent months saw fund managers piling into BOC Aviation’s recent four year offering. A regular issuer, the aircraft leasing company has already issued in Aussie dollars and dollars this year.

A French working group comprising French, Chinese and international banks in Paris has got the nod from the People’s Bank of China (PBoC) to proceed with the creation of a clearing house structure to facilitate the clearing and settlement of RMB transactions in France, GlobalRMB understands.

The Province of British Columbia (BC) priced its second offshore renminbi bond at 2.85% late on October 28. BC’s familiar name, the deal’s SEC registration and current strong RMB internationalisation momentum helped the deal attract a good showing from investors in the Americas. Also notable was a big jump in European participation from BC's debut RMB bond last year.

Hong Kong Airlines International tapped the dim sum market for Rmb800m ($131m) on October 28, even though the order book suggested that the carrier could have raised a lot more.

Aircraft leasing company BOC Aviation is in the market with a new four year dim sum, following hot on the heels of an offshore renminbi bond from Hong Kong Airlines.