Latest regulation/policy news
China policy round-up: Liu in the US, risk prevention high on leaders’ agenda, Shanghai celebrates liberalisation efforts
The Chinese vice premier is in the United States for trade talks, policymakers highlight concerns about systemic financial risk, and officials in Shanghai say foreign financial institutions are setting up operations in the city after China announced measures to further open up the onshore market.
Japan receives a renminbi qualified foreign institutional investor (RQFII) investment quota, People’s Bank of China chief backs greater liberalisation of domestic financial sector and RMB exchange rate, and the central bank outlines key objectives for RMB internationalisation in 2018.
Discussions around the co-existence of two renminbi markets, one onshore and one offshore, are once again picking up pace, market participants told GlobalRMB. It will be up to China’s central bank to clean up the mess once and for all.
The Belt and Road Initiative (BRI) may be highlighting the dollar’s dominance rather than the renminbi’s potential in the global economy. But Beijing has other aces up its sleeve, Paola Subacchi, an economist at Chatham House, said at the Asian Development Bank’s annual meeting.
The People’s Bank of China publishes new rules governing the RMB qualified domestic institutional investor scheme, China and Nigeria ink a swap line, and the State Administration of Foreign Exchange pledges further reforms.
China’s regulators are planning to push ahead with a long-awaited delivery versus payments upgrade for Bond Connect as early as next month, GlobalRMB understands. The move addresses one of the major headaches for foreign investors using the scheme to buy onshore renminbi bonds.
The China cross-border interbank payment system (Cips) started 24 hour operations on May 2, the central bank announced. But Swift thinks there is plenty of room to improve China's clearing and settlement infrastructure.
The China Banking and Insurance Regulatory Commission (CBIRC) is lifting the bar on international banks to underwrite Chinese government bonds and their local branches to trade derivatives, one of a slew of measures released this weekend to set foreign banks in China free and increase competition in the onshore market.
The week in renminbi: CSRC officially lifts foreign ownership caps, extra time for WMP rules compliance, FTSE Russell bullish on dim sum
Securities watchdog moves the foreign ownership limit in securities and asset management companies to 51%, regulators extend grace period for financial institutions to comply with wealth management product rules, and FTSE Russell says dim sum will thrive despite onshore opening.
RMB round-up: New outbound quotas on the way, NDRC mulls negative lists, Citi teams up with Chinese banks for BRI business
China’s FX watchdog indicates that new quotas will be granted for two outbound investment schemes, the country’s economic planner prepares to roll out new negative investment lists, and Citi partners with Bank of China and China Merchants Bank to finance Belt and Road projects.
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Latest news by market and league table performance
GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|1||China Merchants Securities Co||21.76|
|2||Agricultural Bank of China (ABC)||15.11|
|4||China CITIC Bank Corp||13.60|
|5||Industrial and Commercial Bank of China (ICBC)||10.58|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||26-Apr-18||Global Logistic Properties via Iowa China Offshore Holdings||Hong Kong||1,500|
|3||23-Apr-18||CAR Inc||Hong Kong||730|
|4||11-Apr-18||China Jinmao Holdings||China||3,000|
|5||11-Apr-18||Global Logistic Properties via Iowa China Offshore Holdings||Hong Kong||1,200|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||33.22|
|3||Bank of Taiwan||5.04|
|3||Cathay United Bank||5.04|
|5||Societe Generale Securities Services||4.37|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||04-May-18||Busan Bank||South Korea||500|
|2||27-Apr-18||Central American Bank for Economic Integration (CABEI)||Honduras||2,000|
|4||19-Apr-18||Shui On Development (Holdco for Shui On Land)||China||600|
|5||10-Apr-18||Bank of China Taipei Branch (BOC Taipei)||China||3,000|