China

Direct trading between renminbi and the Singapore dollar (SGD) was launched on China’s interbank foreign exchange market on October 28, according to the China Foreign Exchange Trade System (CFETS).

The French central bank, the Banque de France, signed a memorandum of understanding with the Hong Kong Monetary Authority (HKMA) on October 28. The partnership is targeted at increasing co-operation in RMB business for banks and corporates.

British Columbia raised Rmb3bn ($490.7m) with its second ever dim sum bond on Tuesday.

Hong Kong giant Hutchison Whampoa is tapping the offshore market only for the first time this year and is looking to issue in both US dollars as well as euro via two separate deals.

The Province of British Columbia (BC) has launched a benchmark size offshore renminbi bond through Bank of China and HSBC. It will mark BC’s second RMB bond, after it became in October 2013 the first sub-sovereign issuer to sell a dim sum bond.

The Shanghai-Hong Kong Stock Connect initiative, also known as the Through Train, this week missed the October 27 launch date that had until recently been widely expected. The Hong Kong Stock Exchange (HKEx) issued a note on October 26 stating the programme was ready to go but was awaiting final approval from Hong Kong and Chinese regulators.

Shinhan BNP Paribas Asset Management has become the first Korean institutional investor to receive a licence to access China’s onshore capital markets via the renminbi qualified foreign institutional investor (RQFII) scheme.

US-based exchange traded fund (ETF) provider KraneShares, in partnership with China’s Bosera Asset Management, moved their China A ETF product to the new MSCI China A International Index on October 24.

In this round-up, RMB deposits in Taiwan break past Rmb300bn in September, Macau RMB deposits and RMB cross border trade fell slightly in August, the Hong Kong-Shanghai Stock Connect initiative looks likely to be launching later than expected, and a Canada-China currency swap line could be coming in November.

Industrial and Commercial Bank of China (ICBC) Europe has launched a Renminbi Qualified Foreign Institutional Investor (RQFII) fixed income fund that is compliant with the European Union directives on Undertakings for Collective Investment in Transferable Securities (UCITS). The fund is the first RQFII fund to be issued by an EU registered Chinese bank.

Standard Chartered has created a new role of head of RMB sales, appointing Zhou Cheng Gang to the position. Zhou joined from Pimco and is based in Hong Kong, reporting to George Sun, head of financial markets sales for greater China and Northeast Asia.

Hang Seng Indexes and Markit this week launched the Hang Seng Markit iBoxx Offshore RMB Bond Index family (HSM iBoxx), which includes more than 600 indices classified according to criteria such as issuer types, sectors, rating, maturity and size.