GlobalRMB Quarterly Review, Q2 2017

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  • Letter from the editor

  • Banks kick off Bond Connect trading

    International banks were up and running on the new Bond Connect scheme minutes after it opened for business at 9am on Monday. But analysts think it is unlikely the bond link will start with a bang.

  • The lowdown: PBoC clarifies Bond Connect rules

    On Thursday, People’s Bank of China provided some clarity on the operational details of the upcoming Bond Connect. The rules make clear who will be permitted to use the bond link and which electronic platforms investors will be able to trade on. Here’s our summary of the scheme’s key features.

  • MSCI marries into A-shares, ups weighting in EM index

    Index provider MSCI decided it was time to include A-shares in its emerging markets index, making the announcement just before 5am Hong Kong time on June 21. Chinese onshore stocks will make up 0.73% of the MSCI Emerging Markets index starting May 2018.

  • MSCI A-share inclusion presents China with to-do list

    China may have got its second big win on the global stage, after the inclusion of the RMB in the SDR, on Wednesday when MSCI decided to add A-shares to its emerging markets index, but that does not mean the authorities can now rest on the laurels. The small weighting given to A-shares by MSCI is just one indication of how much China still has to do to upgrade its capital markets.

  • The lowdown: All you need to know about MSCI and China

    Global index provider MSCI announced on Wednesday that it will begin including Chinese A-shares in its emerging markets index, giving its blessing after three consecutive rejections. Here is GlobalRMB’s lowdown on what you need to know about the upcoming inclusion.

  • China bulls and bears: embrace the inevitable

    MSCI’s decision on June 21 to include A-shares in its Emerging Markets Index has, once again, unleashed furious debate between those seeing it as another case of global institutions bending the rules to appease China and those always viewing the China glass as half full. But neither view has much to offer in explaining the Mainland’s growing integration in global financial markets.

  • CNH, Bond Connect drive MoF offshore auction demand

    China's Ministry of Finance completed its first semi-annual auction of the year of offshore renminbi (CNH) bonds on Thursday, in a deal that surprised analysts with the strength of its demand.

  • BOC bags Belt and Road blockbuster

    Bank of China hit Asia's debt market hard on Tuesday, unleashing a huge deal spanning four currencies and six tranches. The $3.1bn-equivalent deal was designed to make a statement to the market that it should not forget China’s Belt and Road initiative, DCM bankers said. Morgan Davis and Addison Gong report.

  • Daimler leads Panda issuance, CPNE debuts green RMB bond

    Germany's Daimler has rapidly returned to the Panda bond market, pricing a dual-trancher last week. Its deal was followed by China Power New Energy Development Company (CPNE)’s debut green Panda, a rarity in the renminbi market.

  • CMP raises Rmb2.5bn from ‘Silk Road’ Panda

    China Merchants Port Holdings (CMP) successfully raised Rmb2.5bn ($363.4m) from a five year Panda bond on the interbank market on Thursday. The company is presenting the trade as a Silk Road bond, even though all of the proceeds will be used onshore.

  • Manipulation stance dropped as Trump softens tone

    The friendly meeting between US president Donald Trump and his Chinese counterpart Xi Jinping last week has ushered in warmer relations, with Trump stating on April 12 that the US Treasury will not label China a currency manipulator. Meanwhile, the two sides are working on a framework for greater market access to be delivered in just over three months.

  • Banks slam PBoC fix adjustment

    There was little understanding among market watchers to news that the Chinese central bank is planning to introduce a counter-cyclical component to the calculation of the daily fix of the onshore RMB (CNY). Analysts say the move contradicts earlier statements from the PBoC about giving markets more say in the exchange rate.

  • CNH surge continues as China squeezes offshore liquidity

    The offshore renminbi (CNH) reached its strongest point against the dollar since the start of the year on Thursday, despite China’s sovereign rating downgrade last week. Analysts say the sharp turn reflects Chinese regulators’ determination to keep the currency from falling ahead of renewed pressure from external factors.

  • SDR status fails to boost RMB reserve holdings

    New data from the IMF shows RMB-denominated reserves remain a drop in the ocean for global central banks.. But while experts expect the share to rise, it might not happen in the short run.

  • OBOR’s RMBi impact divides experts

    Banks are beginning to grapple with the implications of funding the One Belt One Road (OBOR) project following the Belt and Road Forum for International Cooperation this month. While the initiative will likely help the renminbi go global, it is unclear how far and fast a boost RMB internationalisation will get from it.

  • Banks get down to business with OBOR

    One Belt One Road has graduated from diplomatic talking point to economic imperative after China pledged a series of investments at the Belt and Road Forum for International Cooperation in Beijing in mid-May. Now, banks are lining up to get a piece of the action in a field that is traditionally dominated by governments and policy institutions.

  • Special round-up: the Belt and Road Forum for International Cooperation

    The One Belt One Road (OBOR) forum dominated global headlines on Sunday, when the summit kicked off in Beijing. While there was no shortage of grandiose statements, analysts remain divided over what OBOR will mean for China and its renminbi internationalisation (RMBi) strategy. In this round-up, GlobalRMB summarises the market views on the forum’s outcomes.

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Publisher, special projects: Ashley Hofmann

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