Greater China

The underperformance of offshore renminbi government bonds relative to investment grade corporate bonds is expected to reverse on improved liquidity in the short term, says HSBC.

Korea Finance Corp is selling a public dim sum bond before the end of this year, after making its offshore renminbi debut with a Rmb130m ($20.55m) private placement last week.

The state’s financial regulator is seeking agreements with four Southeast Asian nations to bolster its banks’ investment reach – and potentially their renminbi businesses.

China has bestowed a number of great renminbi gifts on the island state, but it could end up squandering them unless its regulators do more to encourage the dim sum market.

The Thai bank says it is considering selling offshore renminbi bonds as it seeks economical ways to help fund its branch expansions in China.

Top 3 Offshore RMB DCM Transactions - 2012 YTD

The City of London initiative, which spearheads the financial centre’s drive to become a centre for renminbi, is planning to add three banks to its steering committee.

Debt capital market chiefs call for clearer regulations to boost the dim sum market, but are less concerned about stagnant deposit figures.

China seems to have found a solution to its money market’s liquidity shortage. Yet the country needs more than just short-term strategies – what it needs are cuts to banks’ reserve requirement ratios.