China

In this week’s round up of offshore renminbi news, ICBC clears Rmb60 billion in Singapore, Taiwan expands companies’ dim sum bond trading capabilities, and Australians show appetite for renminbi.

Japanese investors got their Korean fix last week when Shinhan Bank issued a ¥30bn ($301.3m) Samurai, providing supply to a market that had not seen a Korean deal since January.

The offshore version of China’s renminbi currency is continuing to grow in trade settlement and product usage, and is gaining the support of an increasing number of banks. ASIAMONEY’s second Offshore Renminbi Poll reveals which banks are considered the best providers of renminbi products by the companies and investors that use them.

Bejing is committed to scraping the floor on lending rates but the immediate effect on borrowing costs is likely to be minimal, leading to the need for more reforms including the liberalisation of deposit rates.

Bank of Queensland is gearing up for its first Australian RMBS of the year. The A$500m deal adds to the A$10bn of RMBS issuance from Australia in the first half of the year.

The argument that the renminbi needs to weaken to reach fair value is deeply flawed. It is much more likely to edge higher this year and make further gains in years ahead, says Capital Economics.

Vincent Wong, a managing director in RBS’s debt capital markets (RBS) team, left the bank last week to join a rival institution in what is the latest senior move from the desk.

United Overseas Bank this week priced Asia’s first tier one Basel III-compliant bonds, getting an S$850m ($670.9m) perpetual non-call five deal away at just 4.9% — a level that even rival bankers grudgingly admitted was tighter than they had expected, writes Frances Yoon.

Offshore renminbi bonds have become more expensive to issue, but corporates can still embark on alternative strategies to refinance upcoming dim sum bond maturities economically, say experts.

In this roundup of offshore renminbi news, China expands its RQFII programme, Taiwanese renminbi deposits rise to Rmb71.2 million, and Li Keqiang takes a stand on Shanghai’s free-trade zone.

RQFII quotas make little sense for London but China should leverage Singapore’s wealth management capabilities and encourage the Lion City to become a leading offshore RMB investment centre.