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China's pursuit of more global financial connectivity is a tricky balancing act. Reforms are flowing thick and fast, but the final objective can be hard to fathom. The internationalisation of its currency involves many checks and balances — and as Elliot Wilson writes, there is little consensus on how far, and how quickly, the country wants to move.

The internationalisation of China's economy has long been seen in the context of allowing foreign investors increased access to domestic markets. But the most recent initiatives make clear that this access is a mere stepping stone to another destination. Unleashing Chinese investors onto the world stage is the bigger goal.

Offshore RMB trading volumes are surging in the foreign exchange markets. A currency born for limited trade settlement use between five Chinese cities with Hong Kong, Macau and ASEAN countries in 2009 now has banks, traders and central banks around the world gearing up for its endgame: a trade and investment tool on a par with the dollar.

With Middle East countries becoming increasingly important trade partners for China, the Gulf region is rapidly assuming a central position in the investment ambitions of Chinese corporates. But the links go both ways, with MidEast companies also stepping up their operations in China. Chris Wright looks at the two regions' growing links.

Post-crisis pressure on Western banks and faltering domestic returns are pushing Japanese banks to be increasingly aggressive overseas. Buying up swathes of assets and an energetic hiring spree have helped put Japan's biggest lenders in a position that they have not enjoyed for years, as Peter McGill reports.

As one of the four Asian Dragons, Taiwan has been growing steadily over the past couple of years despite obvious political headwinds from China. The same political cloud is hanging over its capital markets development, and Taiwan's efforts to relieve the pressure have had only mixed results.

Companies are poor at reporting the financial impact of their socially responsible projects in what is a growing $15tr market, writes William Cox of Management & Excellence, which created the methodology for the M&E BDO Asiamoney Hong Kong Sustainable Stars Index.

Global and domestic investors taking a close look at the ASEAN bond markets have to face a number of issues, including how best to hedge unwanted rate risk, how to navigate a choppy swap market, and how to ensure that they get the best value from issuers that often have plenty of financing options elsewhere. But when Asiamoney gathered an esteemed panel of investors and market experts at its latest ASEAN Bond Markets event in Kuala Lumpur, only one topic dominated discussion: ratings. We took the opportunity to get the view from market participants inside and outside the country on just how important ratings are, how big the unrated market can get, and how end-investors can be convinced to trust funds' own credit work.

ASEAN bond investors are fast becoming a source of funding not just for those issuers in their own countries, or even those across their borders, but also for issuers from elsewhere in the world. It should come as little surprise, in this context, that the latest event in Asiamoney's annual ASEAN Bond Markets series should feature the head of international funding for a sovereign outside the region, alongside well-known Malaysian issuers, guarantors, and senior bankers. Asiamoney took the opportunity to get a sense from those on the panel exactly how they see the future playing out — and, importantly, how they can use the debt financing markets to make sure that that future is as bright as possible.

The decision by the European Central Bank to start quantitative easing has changed the game for European borrowers who want to target an Asian investor base. More are opting to stay away as they seek cheaper funding opportunities at home, but Asia’s local currency markets, especially the offshore renminbi, are starting to get the attention of European financial institutions.

The last year has seen landmark capital market deals in the Islamic banking sector. And away from individual transactions, banking assets have continued to grow, alongside the number of customers taking advantage of the products on offer. Here we present our picks for the best Islamic banking franchises in Asia. By Chris Wright.

Judging by the deals that took place in Asia over the last year, innovation is alive and well in Islamic finance, even in an industry that appears increasingly commoditised. Transactions in the region showed new structures, new currencies and new underlying assets, as Chris Wright reports.