Offshore RMB Bonds A Maturing Global Market

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  • Singapore bypassed in internationalisation push

    Singapore had big ambitions last year to become the next offshore renminbi hub, holding talks with Chinese banks about setting up a clearing house and meeting with government officials. But this has turned out to be more than a little optimistic, and Singapore appears to have lost its place in the CNH pecking order. Louisa Burwood-Taylor reports.

  • RMB’s growing pains will lead to greater maturity

    The rush of enthusiasm, and bonds, that greeted the launch of the dim sum market has given way to a more considered approach to issuance and investment. The market will be all the better for it, writes Andrew Capon.

  • RMB ready to transform world trade settlement

    International trade is at the heart of China’s financial liberalisation and the country’s exporters have jumped at the chance to settle transactions in their home currency. The growth in the use of renminbi in the last two years has been astonishing and is only going to increase, says Chris Wright.

  • PBOC, HKMA forge strong, effective RMB relationship

    The road to full convertibility is long and tricky. But the key regulators are proving to be adept shepherds of the process, says Chris Wright.

  • PBOC loosens its grip

    The People’s Bank of China is letting market forces have a bigger say in determining the value of the renminbi. Chris Wright reports on the effect of greater volatility on capital markets and asks what the central bank might do next.

  • Offshore RMB: an incremental revolution

    Since the time of Aristotle through to Charles Darwin’s observation of evolution through natural selection, the idea that "nature does not make jumps" has been a guiding principle of the Western philosophy and science.

  • Necessity is the mother of RMB invention

    The internationalisation of the RMB has been driven by economic necessity. As China grows that need becomes ever more acute, writes Andrew Capon.

  • Maturity brings headaches for dim sum issuers

    The offshore renminbi bond market has matured a great deal since the middle of 2011, but for many issuers that means it has become less attractive. Chinese corporations, in particular, are facing a more demanding investor base that is now calling for more ratings, stricter covenants and better pricing. These newly aggressive investors seem more suitable for foreign issuers, and the numbers reflect this.

  • Loans have potential but more hard work needed

    The offshore renminbi loan market has been picking up pace since the start of 2012, as banks, industry bodies and regulators increasingly try to overcome the hurdles to a liquid offshore loan market. But it will take a long time before loans challenge dim sum bonds as the dominant renminbi funding source offshore. Matthew Thomas reports.

  • KfW confirms SSA appetite for RMB

    Public sector issuers have piled into offshore renminbi bond issuance this year, lending their efforts to what is likely to be the biggest year of borrowing yet in this fast growing currency market. But the swap arbitrage is hardly advantageous to euro and dollar funders. Tessa Wilkie reports on what keeps SSA borrowers paying up for a seat at the RMB table.

  • Issuers grapple with Panda problems

    The prospects for onshore renminbi bonds by international borrowers — Panda bonds — are tricky to say the least. But that doesn’t stop issuers from preparing for if and when the sluice gates open to unleash a deep pool of liquidity. Tessa Wilkie reports.

  • Investors still hungry for dim sum but getting pickier

    Offshore renminbi investors have strengthened their position over the past year, pushing more issuers to adopt ratings, accept stricter covenants and, particularly, to increase their yields. But there is still a long way for investors to go before they wrest power away from issuers and become true price-setters.

  • Global banks rush to tap great renminbi expansion

    The offshore renminbi market no longer offers the arbitrage it did in the aftermath of its internationalisation in 2010. But European bank borrowers are still keen to get in on the action, despite the premiums demanded by investors. Will Caiger-Smith reports on the market of the moment.

  • EuroWeek RMB 2012 Full PDF Download

  • Euroweeek RMB Data Section

  • ECM bankers not on the RMB guestlist

    The Hong Kong stock exchange has made developing the offshore renminbi IPO market one of its priorities over the past 18 months, attempting to boost liquidity and make it easier for issuers and investors to participate. But without a single deal in the market this year, does the HKEx need to change tack? Louisa Burwood-Taylor reports.

  • Dim sum needs a push to lengthen maturities

    The offshore renminbi bond market has made impressive advances in the last two years, but one area that bankers and issuers are struggling to develop is the average maturity of dim sum debt. It looks unlikely that there will be a move to lengthen the tenor of deals soon, but the Chinese government could help push things in the right direction, writes Jun Ebias.

  • Companies recognise the true value of offshore RMB

    While arbitrage was the key draw for many issuers when the RMB market took off last year, corporate borrowers are beginning to value the diversification and branding opportunities that the Chinese offshore currency market can also bring them. Philip Moore reports on the new drivers of the corporate CHN market.

  • CNH catches on with emerging borrowers

    Trade between China and other emerging regions is continuing to expand rapidly. For example, China has displaced the US as Brazil’s largest trading partner. Such developments make bankers very optimistic about the outlook for emerging market issuance in CNH, reports Philip Moore.

  • Chinese issuers find tougher environment

    Chinese issuers have become a less important source of dim sum issuance over the last year, making way for an increasing number of foreign issuers. But the fall in mainland issuance is pushing the government to liberalise rules for offshore renminbi borrowing, opening the way for a deeper market in the long-term. Jun Ebias reports.

  • Advantage London but Europe poses new threat

    London may be Europe’s most dynamic financial centre but it is under attack like never before, with the European Commission’s proposal for a financial transaction tax posing the biggest threat. Philip Moore examines how the City is working to maintain its advantage and cement itself as the leading RMB centre in Europe.

Publisher: Oliver Hawkins

Telephone: +44(0)20 7779 7304

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305

 

Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740