China

HSBC is the first issuer to price an offshore renminbi bond that will be cleared and listed in Singapore on May 27, closely followed by Standard Chartered, as banks raced to be the first name in the market.

DBS and HSBC are planning the first ever renminbi-denominated bonds in Singapore but commentators argue the bonds are no different to dim sum issued in the Hong Kong market.

HSBC priced the first offshore renminbi bond that will be cleared and listed in Singapore on May 27, closely followed by Standard Chartered, as banks raced to be the first name in the market.

In this roundup of offshore renminbi news, Taiwan allows lifers to invest in renminbi products, Safe grants new RQFII quotas and J.P. Morgan helps client execute cross-border renminbi loan.

The newly formed China Railway Corporation’s lack of clarity to whether its upcoming maiden renminbi bond will be government-backed calls the need for investors to price in potential risks, say experts.

Newly-introduced renminbi wealth management products in Qianhai will likely have quotas attached, limiting the shifts of liquidity in and out of the economic zone, says the bank.

Taiwanese regulators are making gradual efforts to develop its bao dao bond market, but the need for more foreign participation and removal of withholding tax policy is important for its long-term growth.

The UK bank has been voted the best provider of offshore renminbi products and services for the second time in a row, according to an increased number of corporates, financial institutions and investors.

Fantasia Holdings Group and Powerlong Real Estate Holdings both managed to price three year dim sum deals on May 20, underscoring demand for offshore renminbi bonds but also raising questions over whether the market is becoming too saturated with high yield supply.

New state-backed renminbi-denominated private equity funds may receive more lenient treatment for their capital when investing offshore than their non-state counterparts, private equity insiders say.