China

In this week's round-up, the RMB rises further in StanChart's RMB Globalisation Index, the Shanghai Gold Exchange plans to allow CNH gold trading in Shanghai's Free Trade Zone (FTZ), FTSE announces the launch of an R/QFII Index Series, and RBS unveils two-way sweeping in the FTZ for French corporate Sonepar.

China is planning to introduce what it calls project revenue notes (PRNs) to its onshore market in order to reduce the potential risks of mounting debt at local governments and in the domestic banking system, two sources have told GlobalRMB. The People’s Bank of China (PBoC) is pushing the new funding instrument, while the National Association of Financial Market Institutional Investors (Nafmii) will supervise the programme.

AVIC has announced guidance on a three year dim sum bond, after wrapping up investor meetings on Thursday.

The Chinese arm of Ford Automotive Finance is preparing its debut onshore syndication, pressing the pedal on a Rmb2bn ($324m) three year loan that comes hot on the heels of the company’s first auto loan ABS deal.

Chinese state owned logistics company Sinotrans priced its second offshore renminbi bond on Tuesday with a Rmb1bn ($162m) three year issue. However, oversupply from China in the dim sum market and investor unfamiliarity meant the deal was met with a fairly quiet reception.

AVIC International Leasing Co has appointed DBS as sole global co-ordinator to arrange a series of fixed income investor meetings. Agricultural Bank of China Singapore Branch joins as a bookrunner and lead manager.

Chinese securitization is poised to take another step forward with the first internationally-rated auto ABS from the country, a Rmb800m ($128m) deal from seasoned issuer Volkswagen.

Sinotrans returned to the offshore renminbi market on Tuesday with a three year transaction. It is the Chinese state owned logistics company’s second time issuing in CNH since its debut in 2011.

Beijing Automotive Group printed Rmb1.5bn ($243m) for its debut international bond on May29. The unrated automaker’s close ties to the Beijing Municipal government helped its three year issue to build a strong following with investors.

Sinotrans will meet investors for a proposed offshore renminbi bond as the borrower looks to sell its second deal in the market after making its debut in 2011.

In this round-up, this year's offshore renminbi bond volumes have already overtaken the whole of last year, RMB deposits rise in Luxembourg, the first two Singapore RQFII licences for investment firms are awarded, the first small-cap RQFII product is launched, and an Australian fund manager sets up shop in the Shanghai Free Trade Zone.

Sinotrans will be meeting with investors for a proposed offshore renminbi bond as the borrower looks to sell its second deal in the market after making its debut 2011.