Latest treasury/cash management news
The Asian Development Bank (ADB) is struggling to find the long term RMB funding it needs in both onshore and offshore markets, treasurers at the development bank told GlobalRMB at their head office in Manila.
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.
In the third of a four-part series of articles on China’s financial transformation, cash management experts tell GlobalRMB the wheels are again in motion for foreign corporations in China to move past nearly three years of strict capital controls that have all but killed their intent of using the country as a regional treasury hub.
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.
Swift is looking to further streamline the RMB payment experience with the recent integration of China’s cross-border interbank payment system (CIPS) data with its information platform and the launch of the global payments innovation (gpi) initiative, Eddie Haddad, managing director for Swift in Asia Pacific, told GlobalRMB.
RMB round-up: Xi orders watchdog to prevent financial risk, VW Financial’s China arm strikes second onshore bond, UK remains biggest centre for RMB FX trading
Chinese president Xi Jinping orders authorities to take action to prevent financial risk, Volkswagen Financial Services’ China arm issues its second renminbi-denominated bond, and the UK reaffirms its status as the biggest centre for RMB FX trading.
People’s Bank of China (PBoC) relaxed capital controls for the first time since 2015 last week, scrapping an order introduced in January. Experts say the move is an attempt to rebuild foreign investors’ confidence, and may even signal a return to full blown renminbi internationalisation.
Foreign investors looking for opportunities in China will now have seven new free trade zones to choose from, following a low-key launch on March 31. While the impact of the individual zones will take time to evaluate, some argue the new FTZs could address China’s capital outflow problems.
Renminbi depreciation has been one of the market's most talked about issues with many predicting the trend to continue well into 2017. But ICBC Asia’s co-head of global markets Jimmy Jim told GlobalRMB that such fears are overblown and he believes the renminbi is maturing into a two-way fluctuating currency.
Two and a half years after the launch of the first pilot free trade zone in Shanghai, the authorities appear ready to inaugurate a third batch of FTZs. But recent moves to restrict capital outflows have ended up hurting foreign enterprises, dealing a blow to China’s efforts to open its capital account.
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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||26.40|
|2||Industrial and Commercial Bank of China (ICBC)||20.00|
|4||Agricultural Bank of China (ABC)||12.00|
|5||Bank of China (BOC)||11.33|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||13-Mar-19||Global Logistic Properties via Iowa China Offshore Holdings||Hong Kong||3,300|
|2||12-Mar-19||United Overseas Bank (UOB)||Singapore||2,000|
|3||05-Mar-19||BMW Finance N.V.||Germany||3,000|
|4||01-Mar-19||Semiconductor Manufacturing International Corp (SMIC)||China||1,500|
|5||25-Feb-19||New Development Bank||China||3,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||46.13|
|2||Haitong International Securities||9.55|
|2||Guotai Junan International||9.55|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||13-Mar-19||Daimler International Finance||Germany||1,000|
|2||05-Mar-19||Fantasia Holdings Group Co||China||1,000|
|3||26-Feb-19||Far East Horizon||China||440|
|4||22-Feb-19||Asian Development Bank (ADB)||Philippines||300|
|5||31-Jan-19||Emirates NBD||United Arab Emirates||400|