China is aligning itself with central banks around the world by giving the People’s Bank of China a leading role in regulating financial markets, Xu Zhong, head of the research bureau at the PBoC, has argued.
RMB round-up: Insurance watchdog takes over Anbang, Fullerton makes private fund debut in China, RMB stays fifth in payments ranking
The China Insurance Regulatory Commission (CIRC) takes control of Anbang Insurance Group amid concerns over its finances, Fullerton Fund Management offers its first private fund in the onshore market, and the renminbi remains the fifth most used payments currency in January 2018.
The Republic of Turkey is preparing to issue its first Panda bond by the end of the year, having mandated three banks to handle the deal.
Chinese issuers are back following the Lunar New Year break. Far East Horizon and Redco Properties Group are both wooing bond investors, effectively reopening the dollar debt market in Asia.
The People’s Bank of China has laid out its next moves to upgrade the domestic bond markets, including better market standards, clearer default rules and further opening to foreign investors — steps that could make regulators less active in the corporate debt market.
The Global RMB Poll 2018 runs from February 26 to March 30. Corporations, financial institutions and investors from around the world that have used renminbi services are welcome to participate.
Chinese financial services provider Far East Horizon is pursuing the sale of a dollar-denominated and offshore renminbi bond.
Chinese New Year round-up: Safe relaxes onshore rules on FX forwards, HSBC completes RMB remittance first, US blocks Chinese bid to buy stock exchange
China’s FX watchdog loosens its grip on FX forward settlement, HSBC becomes the first foreign bank to handle an individual RMB remittance transaction following a rule change in January and the Securities and Exchange Commission (SEC) stopped an attempt by Chinese investors to acquire the Chicago Stock Exchange.
HSBC's annual results show the bank's focus on RMB business has yet to translate into revenue growth.
JP Morgan has become the first non-Chinese financial institution to get an official renminbi clearing bank licence, joining Bank of China's New York branch as the second such firm in the US, the People’s Bank of China said on February 13.
Sino-Ocean Property Holdings has extended the streak of Panda bonds issued since the start of 2018. The real estate issuer sealed a Rmb3bn ($476.2m) three year deal – its second Panda in two weeks – at the wide end of the price guidance range last Thursday.
The week in renminbi: China sets date for oil futures launch, Philippines wins approval for Panda debut, offshore investors hold more Chinese bonds
China unveils plans to kick start RMB-denominated oil futures next month, the Philippines gets regulatory greenlight for its Panda bond issuance, and foreign ownership of bonds in the interbank bond market rises again in January.
Sinochem Hong Kong (Group) Company has raised Rmb1bn ($158m) from a dim sum bond, reviving the sector for corporate issuers from the Mainland. Although market sentiment was not ideal, the issuer still managed to achieve a ‘good saving’ compared to both its onshore funding level and the likely funding cost it would face with a dollar deal.
Mainland consumer electronics giant Qingdao Haier is considering launching a flotation of Chinese D-shares on the Frankfurt-based China Europe International Exchange (Ceinex).
RMB round-up: PBoC to reform bond markets, FX reserves up for twelfth straight month, Cambodia considers RMB for China trade
The People’s Bank of China eyes bond market reforms, China’s FX reserves stand at $3.16tr after another month of growth, and Cambodia moves closer to replacing the dollar with the renminbi for trades with China.
GLP has raised Rmb1.2bn ($191m) from a nine year Panda bond on the Shenzhen Stock Exchange. The size of the Belt and Road branded deal was expanded, surprising some in the market.
China Merchants Port Holdings sealed its first Panda deal on the Shenzhen Stock Exchange on Monday, raising Rmb500m ($79.5m) from a three year bond. The red chip issuer will take the proceeds offshore to finance its Belt and Road Initiative-linked purchase of the Hambantota port in Sri Lanka.
Panda bond issuance has so far been dominated by overseas-incorporated Chinese names. That bolsters volumes, but it does little to help the market fulfil its role of boosting RMB internationalisation. Policymakers have the chance to fix it — but only if they are bold enough to let markets play a bigger role.
As China's domestic bond market continues to suffer from a deleveraging campaign, Sino-Ocean Property Holdings is again turning to the Panda market for funding – less than two weeks after it last tapped the asset class.
The week in renminbi: CFETS kicks off Thai baht trading, top Chinese official assures Hong Kong of its RMBi role, CCB opens New Zealand branch
China launches onshore trading for Thai baht, NPC chairman says Hong Kong remains important to China’s effort to promote the renminbi, and China Construction Bank opens a new branch in Auckland.
RMB round-up: China signs $12.8bn deals with UK, RMB up one in payments, Aberdeen adds Rmb5.3b RQFII quotas
China agreed to $12.8bn of deals with the UK during the British prime minister’s state visit, RMB returns as the fifth most used global payments currency, and Aberdeen Asset Management grabs Rmb5.3bn ($842.8m) new renminbi qualified foreign institutional investor (RQFII) quotas.
Singapore's GLP will approach Chinese investors on Monday with a nine year Panda bond, one of the longest-dated deals ever to feature in the asset class.
It has now become common for bond issuers to stress their 'Belt and Road' credentials. But China Merchants Port has become one of the first issuers to get the official blessing to use the term.
Chinese investors welcomed the first Panda bond issuer from the Middle East with caution this week. The government of the Emirate of Sharjah sold a Rmb2bn ($317.2m) three year bond in the upper half of the coupon range.
France is hoping to add its name to a growing list of sovereigns in China’s Panda bond market, having discussed the possibility with at least two of the country’s biggest state-owned banks.
Chinese regulators have given Standard Chartered the nod to become a joint lead underwriter on corporate Panda bonds, allowing it to take a senior position on deals that it was previously forced to play a junior role on. StanChart is only the second foreign bank to win the approval.
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Latest news by market and league table performance
GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|1||Industrial and Commercial Bank of China (ICBC)||35.00|
|2||China CITIC Bank Corp||30.00|
|3||China Merchants Securities Co||17.00|
|4||Standard Chartered Bank||5.00|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||09-Feb-18||Sino-Ocean Group Holdings||Hong Kong||3,000|
|2||06-Feb-18||Global Logistic Properties via Iowa China Offshore Holdings||Hong Kong||1,200|
|3||05-Feb-18||China Merchants Port Holdings (CMP)||Hong Kong||500|
|4||01-Feb-18||The Emirate of Sharjah||United Arab Emirates||2,000|
|5||25-Jan-18||Sino-Ocean Group Holdings||Hong Kong||3,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||64.14|
|2||Deutsche Bank (Taipei)||7.95|
|3||Mitsubishi UFJ Financial Group (MUFG)||7.22|
|5||CTBC Bank (formerly Chinatrust Commercial Bank)||2.85|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||22-Feb-18||Far East Horizon||China||630|
|2||08-Feb-18||Sinochem Offshore Capital Company||China||1,000|
|4||17-Jan-18||Asian Development Bank (ADB)||Philippines||100|
|5||17-Jan-18||Export-Import Bank of Korea (Kexim)||South Korea||270|