Latest regulation/policy news
China’s move to remove the quota limits on the Qualified Foreign Institutional Investor (QFII) and the Renminbi QFII schemes could help in the long-term development of the country’s financial market. But this is not nearly enough. If the regulators want to see some serious change, they need to tackle two key hurdles facing foreign investors.
China policy round-up: China, US extend olive branches, CSRC plots more market opening, government tightens internet censorship
In this round-up, both China and the US offered signs of peace around trade, the China Securities Regulatory Commission (CSRC) rolled out 12 measures for further market reform and opening up, and the country’s top internet authority is tightening its control over online content.
The State Administration of Foreign Exchange (Safe) has scrapped the quota limits on two of the oldest access schemes for foreign investors to China’s onshore bond and equity markets. Bankers said the move could bring in some improvements to the way the mainland market operates, writes Rebecca Feng.
The People’s Bank of China (PBoC) is reducing the amount of money that banks need to hold as reserves, a long-overdue move that analysts said is just one of many more easing measures to be implemented in the country.
China policy round-up: trade negotiations back on the table, Hong Kong withdraws extradition bill, state council sends easing signals
In this round-up, the US and China agree to meet in October in Washington, Hong Kong's chief executive formally withdraws the extradition bill and the Chinese state council is set to release local government bond quotas for 2020 early.
BNP Paribas, Deutsche bag full bond underwriting licences in China, but little impact on DCM expected
BNP Paribas and Deutsche Bank have become the first two foreign banks to receive approvals to underwrite all bonds from non-financial corporations in the Chinese interbank market. While the new licence will expand their underwriting scope in the mainland, it is unlikely to make a big dent to their DCM businesses, or challenge state-owned banks’ dominance. Rebecca Feng reports.
The regulator of China’s interbank bond market has given BNP Paribas and Deutsche Bank type A-licences that give them full underwriting access to the market. But the move has puzzled a number of bankers both onshore and offshore.
In this round-up, new tariffs on both Chinese and US goods took effect on Sunday, China’s official Purchasing Managers’ Index declined, and protesters in Hong Kong paralysed the city’s airport yet again.
China policy round-up: China may hold off retaliatory tariffs, six more FTZs announced, PBoC tells banks to comply with new benchmark rate
In this round-up, the Chinese Ministry of Commerce indicated that it might hold off tariff retaliation, the country announced the establishment of six new free trade zones (FTZs) and the People’s Bank of China has asked banks to price loans based on the new loan prime rate (LPR) mechanism immediately.
Foreign banks can now get a licence to act as lead underwriters for all deals in China’s domestic interbank bond market, signalling a further opening up of the Mainland’s financial market. But these licences will only make a marginal difference to a bank’s business.
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Latest news by market and league table performance
GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|1||Bank of China (BOC)||23.56|
|2||Industrial and Commercial Bank of China (ICBC)||16.09|
|3||China Merchants Securities Co||11.38|
|4||Agricultural Bank of China (ABC)||6.90|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||03-Sep-19||China Power International Development||China||2,000|
|2||02-Sep-19||China Power International Development||China||500|
|5||31-Jul-19||Cassa Depositi e Prestiti SpA||Italy||1,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||32.50|
|4||Bank of China (Hong Kong) (BOCHK)||6.22|
|4||Bank of Communications Hong Kong Branch (BOCOM HK)||6.22|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|2||22-May-19||Agricultural Development Bank of China (ADBC)||China||3,000|
|3||16-Apr-19||ICBC Singapore Branch||China||1,000|
|4||10-Apr-19||Bank of China Macau Branch (BOC Macau)||China||4,500|
|5||15-Mar-19||Bank of Communications Hong Kong Branch (BOCOM HK)||China||2,500|