Latest RMB People & Markets news
RMB round-up: China, UK plan Bond Connect, Hong Kong signs BRI agreement, Man Group launches first PFM fund
British and Chinese officials consider launching a bond link between the two countries, Hong Kong and National Development and Reform Commission (NDRC) sign agreement to promote the city’s participation in the Belt and Road Initiative (BRI), and Man Group sets up the first fund under its private fund management (PFM) licence.
China's foreign exchange reserves expanded for the tenth month running, gold futures on the Hong Kong Exchange (HKEX) set a new record, and Aberdeen Standard Investment nabbed a private fund management licence.
HNA Group (International) has mandated a Chinese institution for a Rmb5bn ($756m) private placement Panda bond on the Shenzhen Stock Exchange, according to a December 5 update on the bourse’s website.
Short selling is crucial to the development of China’s equity market, especially in attracting greater foreign participation, Lyndon Chao, head of equities and post trade at the Asia Securities Industry & Financial Markets Association (Asifma), told GlobalRMB.
Regulators in Hong Kong and mainland China are in no urgency to launch a primary equity link, also known as IPO Connect, senior executives at Hong Kong Exchanges and Clearing (HKEX) and the Shenzhen Stock Exchange (SZSE) have said.
Market participants in Hong Kong have welcomed plans by regulators to introduce investor identification (ID) for northbound Stock Connect transactions, noting that the proposal strikes a balance between regulatory transparency and market efficiency.
The week in renminbi: China welcomes French underwriters in CIBM, PBoC’s Pan says risk prevention key to FX policy, FTSE Russell makes changes to China indices
China wants to see more French banks underwriting bonds in its interbank bond market, the deputy governor of the People’s Bank of China says financial risk prevention is a key consideration for the country’s FX policy, and FTSE Russell reviews its China-related equity indices.
RMB round-up: PBoC hold-up delays Philippines Panda debut, HKEX targets Southeast Asia with Singapore office, RMB falls in global payments race
The Philippines postpones its Panda bond deal as it awaits approval from China’s central bank, Hong Kong Exchanges and Clearing (HKEX) opens its first office in Singapore, and the renminbi falls to seventh place in the league table of the world’s most used payments currency in October.
The Chinese Ministry of Finance has successfully completed its second offshore renminbi bond auction of the year, raising Rmb7bn ($1.06bn) from three tranches on Thursday. But poor investor demand for the offering raises questions about the future of the CNH bond market, analysts told GlobalRMB.
Demand from international investors to participate in Bond Connect is strong – with Ireland and Luxembourg-registered funds set to be the next group to join in once real-time delivery versus payment is introduced later this year, two bankers told the IFLR Asia Capital Markets Forum on Tuesday.
The Chinese regulators are planning to expand Bond Connect to cover exchange traded bonds, and are mulling changes to older access channels such as the qualified foreign institutional investor (QFII) scheme, according to market participants.
Foreign ownership reform in the Chinese financial sector is not only a landmark in the country’s opening up, but also a strategic move to rebalance US-China trade. But recent guidelines curtailing banking sector liberalisation appear to be a case of one step forward, two steps back for China. Now more than ever, Beijing must not let its caution around financial risk take over and undo its strategy.
Financial market participants will need to embrace the rise of new technology to survive the transition to a post-cash society, an area where China is taking the lead, Andi Dervishi, CIO and global head of fintech, e-payments and new finance at International Finance Corp (IFC), told a conference in Hangzhou.
Investors are broadly positive on the policy direction set by China’s 19th Party Congress, said experts at Euromoney’s Hangzhou Global Investment Conference on November 21.
The week in renminbi: Shenzhen Connect breaks northbound turnover record, BlackRock eyes long term opportunities with Belt and Road, UOB opens new branch in China
Shenzhen-Hong Kong Stock Connect northbound trading hits new high, BlackRock strategist says Belt and Road will bring about new opportunities in Asia for long term investors, and United Overseas Bank (UOB) opens a new branch in Kunming, Yunnan province.
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GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|1||Bank of China (BOC)||28.62|
|3||China CITIC Bank Corp||9.72|
|4||China Merchants Bank Co||9.18|
|5||Industrial and Commercial Bank of China (ICBC)||7.56|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||22-Nov-17||Province of British Columbia||Canada||1,000|
|3||13-Oct-17||Global Logistic Properties||Singapore||1,000|
|4||19-Sep-17||Skyworth Digital Holdings||China||2,000|
|5||14-Sep-17||Bank of China (Hong Kong) (BOCHK)||China||9,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||31.63|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||15-Nov-17||Bank of China Paris Branch (BOC Paris)||China||1,000|
|2||02-Nov-17||Hitachi Capital (UK)||United Kingdom||500|
|3||27-Oct-17||Korea Development Bank (KDB)||South Korea||1,400|
|4||19-Oct-17||Commonwealth Bank of Australia (CBA)||Australia||1,500|
|5||11-Oct-17||BMW Finance NV||The Netherlands||1,000|