China

HSBC Global Asset Management on Tuesday became the first international investment firm to launch an RQFII bond fund that will focus on the Chinese bond market. The firm will be using an RQFII quota that it was granted in 2013, and plans shortly to launch more products through its London business, which recently received its own quota.

The recent flurry of offshore renminbi activity in continental European cities has not damaged London's position as an RMB hub, although it needs the development of more investment products to fulfil its potential, argues Jinny Yan, London-based director of RMB solutions at Standard Chartered Bank.

Lai Sun Garment (International) is hitting the road this week for its inaugural offshore renminbi bond. The Hong Kong company is looking to venture into a market that has already generated a record volume of deals.

In this round-up, French and German corporates lead in offshore RMB usage, Standard Chartered's RMG Globalisation Index climbs 3.7% to 1,882 in May, and Hong Kong RMB clearing reached Rmb14,237bn in June, a 7.5% increase on the previous month.

Jinchuan Group priced its debut international bond, a three CNH issue, on July 10. The 4.75% bonds were reoffered at 99.724% to yield 4.85%, and the deal was the first time a regional state owned enterprise (SOE) had tapped the offshore RMB market via China’s National Development and Reform Commission (NDRC) quota system.

ITNL priced India’s first ever unrated dim sum bond on Thursday. The deal was capped at Rmb575m ($93m), with the proceeds being used to repay a loan in full.

Bookrunners Barclays and CLSA announced guidance on the three year dim sum bond at 8.375% area. The deal is capped at Rmb575m ($93m) and bankers say that books are growing very well.

Jinchuan Group opened books for a three year offshore renminbi bond with initial guidance at 5.05% area on Thursday morning. The deal marks the first time a regional state owned enterprise (SOE) has tapped the offshore RMB market via China’s National Development and Reform Commission (NDRC) quota system.

The appointment of new clearing banks in Paris, Frankfurt and Seoul, as well as the promised expansion of two way cash sweeping to all foreign corporates in China, should help boost non-Chinese offshore RMB issuance, analysts reckon.

Bank of China Paris Branch printed its debut CNH bond on Tuesday, issuing Rmb2bn ($322m) in a two and five year deal that attracted good demand from Europe. The bonds will be listed in Paris and Frankfurt.

Times Property Holdings has returned to the international bond market and released final guidance on its first dim sum bond. The substantial handle should attract strong support from yield hungry investors, according to bankers on the deal.

China and Singapore are set to kick off a series of initiatives in cross-border renminbi business in the Tianjin Eco-City, a joint project between the two countries that is set to be completed by 2020 with 350,000 residents. The trial scheme will be similar to one that was launched in the Suzhou Industrial Park (SIP) — another China-Singapore project — on July 8, sources close to the matter said to GlobalRMB.