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In this round-up, RMB deposits shrink further in Singapore and Hong Kong, the Stock Connect scheme southbound channel continues to dominate trading, China prepares for direct trading of RMB and Korean won, and Italian enterprises are found to be warming up to the RMB. Plus, a recap of GlobalRMB’s coverage this week.

European Council president Donald Tusk this week told European Union leaders their “utopian” illusions were tearing Europe apart. They may end up doing the same to its banking sector.

As the UK’s EU referendum approaches, associated uncertainty has seen risk in the sterling corporate bond market rise, with liquidity taking a blow.

I was never a fan of banking conferences. I certainly enjoyed a day away from my screens, but I did not like being among a multitude of people bustling around in a tiny space. One of my friends endured one such quintessential Hong Kong experience on a recent visit.

Regulators don’t want their banks getting any larger, and are offering incentives for firms to shrink. But as Italy gears up to rescue another firm with less than €50bn of assets, how small does a bank need to be before it’s no longer TBTF?

CEEMEA league tables will be shaken up by a small number of huge trades from the Middle East. It is fair for the banks at the top of the tables to want to crow about their dominance, but issuers should look past the overall volume numbers when they pick banks.

The Ranger headed to Stockholm last week to catch up on the Nordic market and found a variety of activities on offer besides discussion of the loan market.

The Singapore Exchange’s offer for the Baltic Exchange is the latest in a long line of moves by the Asian bourse to search for new ways to grow. But buying the Baltic Exchange won't be a solution, and the SGX is better off looking for opportunities closer to home.

A slew of onshore bond defaults by Chinese state-owned entities has sent a chill through the market over the past couple of months, with more expected to be in store. But with the market calming down in May, it’s time to take stock and realise that such defaults are part of China’s transition to a market-driven economy — and are essential for the long-term health of the country’s debt market.

China’s transition from a highly managed exchange rate regime to a more flexible one has come under much scrutiny, especially in light of the sharp drop in the renminbi. Even though the currency has started to stabilise in recent months, the Federal Reserve is still a wild card. Rev Hui reports.

China’s efforts to promote the renminbi have been focused on getting the currency out into the world. But since last year there has been a noticeable shift, with Beijing ratcheting up attempts to entice the world into its domestic markets. A new phase of renminbi internationalisation has begun, writes Carrie Hong.

There’s been plenty of hype about Panda bonds as borrowers and bankers scramble to take advantage of this new avenue into China. But for all the momentum the market has shown since reopening, it is plagued by a number of problems including a lacklustre response from onshore investors. Regulators need to act if the market is to reach its potential, writes Carrie Hong.