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The ratings review finished with both upgrades and downgrades linked to senior bonds now being subordinated to regular deposits
Public pension schemes have sold shares in coal, oil and gas companies but are still funding expansion of the gas industry through infrastructure funds
Key points of contention include the investor sanctions regime and the definition of 'resilience'
European and other regulators are working on reforms to make covered bond funding more efficient
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The People’s Bank of China (PBoC) and the South African Reserve Bank (SARB) have signed a Memorandum of Understanding (MoU) for the clearing and settlement of renminbi in South Africa, the two central banks announced on July 7. The move makes South Africa the first offshore RMB hub in Africa.
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In this round-up, Hong Kong RMB deposits and cross-border RMB trade settlement recover slightly in May, Bank of Korea activates a RMB liquidity facility to support markets, Mizuho Bank launches free trade accounts in Shanghai's FTZ, and the FTZ authority ventures overseas with six new offices.
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The mutual recognition of funds (MRF) scheme opens today for application by Mainland and Hong Kong-based fund managers. Foreign asset managers with mainland joint ventures are likely to enjoy early success, though analysts expect the programme to achieve wide popularity.
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News that BlackRock will start using the Shanghai-Hong Kong Stock Connect (SHSC) shows the trading link is beginning to appeal a wider range of investors as the early technical issues get resolved. This increasing popularity is even holding up in the face A-share volatility with turnover on the northbound channel on the rise.
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It's been a good week for Europe's renminbi ambitions with the State Administration of Foreign Exchange (Safe) extending a Rmb50bn RMB qualified foreign institutional investor (RQFII) quota to Hungary, while China Construction Bank (CCB) listed its RQFII ETF on Paris’ Euronext.
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The European Securities and Markets Authority is trying to find a way past rules which threaten to further cripple government bond secondary and repo markets — but it has been hamstrung by flaws in the draft in question.