China

In this week’s round up of offshore renminbi news, the Ministry of Finance plans a dim sum sale while China Development Bank completes its first of the year, South Africa invests in Chinese bonds, and Hong Kong deposits rise in September.

China Development Bank Corporation opened books to a much-anticipated dim sum deal on Wednesday, kicking off a trade that is expected to open the gates to other policy banks and corporations to sell bonds in the offshore renminbi market.

China Development Bank is looking to sell a benchmark-sized, multi-tranche dim sum bond that will include a two-year floating rate tranche linked to the CNH Hibor fixing.

China Development Bank Corporation opened books to a much-anticipated dim sum deal on Wednesday, kicking off a trade that is expected to open the gates to other policy banks and corporations to sell bonds in the offshore renminbi market.

China Development Bank (CDB) is poised to be the first Chinese policy bank this year to tap the dim sum bond market after receiving a long-awaited quota from the National Development and Reform Commission (NDRC). And as part of its role to develop the offshore renminbi bond market, it will introduce a rare floating rate tranche that could generate confidence in the nascent CNH Hibor fixing.

The burgeoning CNH FX option and structured products market reflects increasing offshore RMB sophistication but risks must be acknowledged as the market matures, says Deutsche Bank.

Collateralised loan obligation (CLO) securitisations will become a key way to fund SMEs in China and are an important part of economic reform, but investors must be cautious about product structure.

Taiwan has been cited as one of the most restrictive offshore renminbi hubs for global investors and bond issuers to do business in. Yet new settlement and taxation developments put Taiwan on a more even footing – albeit only slightly.

The burgeoning offshore renminbi bond market claimed three firsts this week, amid suggestions that some of the moves trialled by issuers could become commonplace.

Ping An Insurance priced its second dim sum bond in three years as investors desperately hunt for offshore renminbi supply.