Greater China

Hong Kong based asset managers such as J.P. Morgan AM, UBS GAM and AllianceBernstein are still waiting to find out if they will be granted an RQFII licence, as HSBC gets the go-ahead.

The upcoming audit shows there’s an urgent need for transparency on China’s debt situation, especially if it wants the rest of the world to have confidence in its economy.

Far East Horizon broke the six-week lull in offshore renminbi bonds, responding to reverse enquiry to reopen its 4.5% March 2016 bonds and raise an additional Rmb300m ($49m).

Asian currency bonds from the past week

In this round up of weekly offshore renminbi news, the HKMA gives banks faster access to the renminbi, a shipbuilder trades renminbi-denominated shares in Singapore, and regulators develop the QDII2 programme.

Chinese state-owned banks have been eyeing the CNH bond market, keen to make their first issues of the year. Yet even as conditions improve, a 30-basis point premium will keep these banks out of the market.

China's central bank has removed the lending floor for banks but kept the ceiling for deposit rates. Yet it should consider eliminating the latter as soon as possible if Shibor is to have any real credibility.

The HKMA looked to address offshore renminbi liquidity concerns by improving the provision of the currency, making it available to banks faster.

Asian currency bonds transaction from the last week