China

The recently introduce offshore renminbi (CNH) repo facility needs to shorten its borrowing timeframe from seven days if it is to effectively boost market liquidity, says Deutsche Bank.

Hong Kong’s approach toward its CNH activity has, in some areas, been more conservative than Singapore and London. It’s time to loosen restrictions to remain competitive.

Two Chinese firms look set to follow China Development Bank to the offshore renminbi bond market. China Tianrui Cement and Sinotruk (Hong Kong) met investors this week to get feedback about potential deals.

Global central banks are keen to gain exposure to the renminbi’s growing prominence by diversifying their reserves away from currencies with weak fiscal fundamentals, believe economists.

Top 3 Offshore RMB DCM Transactions - 2012 YTD

The value of renminbi payments surged 17 times in less than two years as interest in the Chinese currency by both countries and institutions continues to mount, says Swift.

Hana Bank will price a two-tranche Samurai bond later this week, becoming the fourth South Korean commercial bank to turn to Japanese investors for funding.

China Tianrui Cement is meeting investors this week to drum up demand for a possible dim sum deal, turning to offshore renminbi investors after pulling a dollar bond last month.

China Development Bank is considering selling the longest maturity bond ever attempted in the offshore renminbi market. The mainland bank could sell a 20 year dim sum bond after getting feedback from investors this week.

China has stepped up its efforts towards greater internationalisation of the renminbi and India ought to do the same with the rupee to prevent its currency from falling behind.

Kexim is planning its second dim sum bond issue for this year in the fourth quarter, as renminbi swap rates made it cheaper for the bank to obtain US dollars through these bonds.