Greater China

Taiwanese electronics company Chicony Power Technology has hit the market for an NT$4bn ($128m) revolver, picking one bank to co-ordinate the transaction. The loan can be drawn in US dollars and Taiwanese dollars, depending on the borrower’s need, said a source.

The RMB globalisation index (RGI) published monthly by Standard Chartered (StanChart) fell by 2.8% in June from a month earlier. The key reason for the drop was lower FX turnover, but ongoing liberalisations should support the market in the coming months.

HSBC has taken a knife to its forecast of volumes of offshore renminbi bonds and certificate of deposits for the year, as attractive costs of onshore funding steal the limelight from dim sum issuance.

Depo Auto Parts Industrial has parked for an NT$7bn ($224.5m) five year financing, with one bank in the driver’s seat.

Nanjing Xinjiekou Department Store, a subsidiary of Nanjing Cenbest, has announced its plan to issue offshore bonds in order to acquire China Cord Blood Corporation (CCBC)’s China business.

The proposed listing of CRCC High-Tech Equipment Corp on the Hong Kong Stock Exchange (HKEx) is gaining steam after the Kunming-based company filed its A-1 on August 6.

China's authorities are moving quickly on two sets of new guidelines, on Panda bonds and green bonds, and could be in a position to release them as early as September. A green Panda bond could follow, GlobalRMB has learned from several sources close to Chinese decision-makers.

In this round-up, RMB indicators rose in Hong Kong across deposits, trade settlement and clearing, HKEx saw a 66% month on month increase in USD/CNH futures, Macau's RMB deposits and trade settlement were also up, and China and Angola will use their national currencies for trade settlement.

The London Stock Exchange Group (LSEG) has made RMB products available across its platforms and is pushing for the currency to become just one more option available to its clients. But product innovation will only proceed as quickly as Chinese regulators' desire to open up, according to LSEG's director of international development.

Last month we noted that market-based measures of implied volatility had fallen considerably as Chinese indexes stabilised, developed market equities moved toward recent highs and commodity selloffs were contained. Two weeks later, we find that volatility risk premiums have fallen further in most cases, as traders price in less risk during a seasonally quiet period.

CME Group has agreed to enter into a joint venture with China Foreign Exchange Trade System and National Interbank Funding Center (CFETS), in a move that positions it to open up CNY denominated markets to foreign investors.

Asian Development Bank has placed its first private medium term note in renminbi, joining a swell of offshore renminbi MTNs in the past month.