China

China's State Administration for Foreign Exchange (Safe) approved Rmb21bn ($3.4bn) of new Renminbi Qualified Foreign Institutional Investor (RQFII) quotas in August, according to data just published by Safe. Of the 18 entities receiving quotas, nine were getting their first, including UK arms of HSBC and BlackRock, who got the two biggest approvals of the latest batch.

Qilu International Capital is seeking to make a debut in international bond markets. The Hong Kong-based securities house will be meeting investors next week for a proposed dim sum issue.

Taiwan is to introduce a local benchmark interbank rate denominated in renminbi, effective from 1 September. The move aims to further expand RMB business in Taiwan as local RMB deposits continue to accumulate, the central bank of Taiwan said on August 28. It could also begin to erode Hong Kong's dominant position.

The mutual market access (MMA) equity trading scheme between Hong Kong and the Shanghai Stock Exchange (SSE) is on track to launch in October after a successful two day compatibility test for brokers was completed last weekend. But even though the clock is ticking, there remain questions over how investors will be taxed and Shenzhen is also looking to get in on the act, writes Rev Hui.

Bank of China (BoC) Taipei Branch and China Construction Bank (CCB) Taipei Branch each priced Rmb2bn ($325m) multi-tranche Formosa bonds in the week of August 25, according to three bankers close to the deals. Both banks have previously sold Formosa bonds, but this is the first time they have done so through their Taiwan branches.

Bank of China (BoC) Taipei Branch and China Construction Bank (CCB) Taipae Branch have each priced Rmb2bn ($325m) multi-tranche Formosa bonds this week, according to three bankers close to the deals. Both banks have previously sold Formosa bonds, but this is the first time they have done so through their Taiwan branches.

The mutual market access (MMA) equity trading scheme between Hong Kong Stock Exchange (HKEx) and the Shanghai Stock Exchange is looking well on schedule for an October launch following the successful completion of a two-day compatibility test on August 23-24. But in order for the scheme to work to its full potential, several outstanding issues need to be resolved, market observers warned.

In this round-up, the People’s Bank of China renewed a currency swap agreement for Rmb15bn ($2.4bn) with the Bank of Mongolia, Macau RMB deposits reached Rmb128.9bn in June while monthly cross border RMB trade fell 21%, Taiwan RMB monthly deposits inch up 0.1% and Singapore confirmed it will join the Asian Infrastructure Investment Bank as one of the founding members.

The mutual market access (MMA) equity trading scheme that is expected to launch in October, also known as the Hong Kong-Shanghai Stock Connect and the Through Train, is likely to catalyse financial reform in the areas of RMB internationalisation and capital account opening, according to a report published on August 19 by CLSA and CITIC Securities (CITICS).

Bank of China Paris Branch (BoC Paris) has expanded its RMB offering drastically over the past year. With rumours of a clearing bank appointment coming in September, and rising interest among corporates and investors for RMB products, the investment by the Chinese bank could be set to pay off.

France's planned offshore renminbi clearing house infrastructure, which will see multiple banks share the ability to clear and settle RMB payments, will lay the foundation for the rapid growth of RMB business in France and beyond, according to those involved with the project.

JP Morgan Asset Management (JPMAM) is hoping that international fund flows into emerging markets — Asia and China in particular — will help to drive interest in its new China A-Share Opportunities Fund, which it launched on August 18.