GlobalRMB Quarterly Review, Q2 2016

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  • US finally embraces RMB with RQFII quota, clearing

    US finally embraces RMB with RQFII quota, clearing

    The news that the US is to receive a Rmb250bn investment quota has been greeted as a welcome, if long overdue, development. Plans are also underway to set up a renminbi clearing system in the US, but the challenge will be convincing the country’s corporates to use the currency.

  • ABC, ICBC combo drives US renminbi ambitions

    ABC, ICBC combo drives US renminbi ambitions

    The US has finally engaged with the internationalisation of the renminbi after years of stubbornly ignoring the currency’s rise. Market participants have welcomed the Rmb617m ($94.15m) worth of instruments issued by the New York branches of Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC), but say the developments are long overdue. Rev Hui reports.

  • China throws open door to CIBM access

    China throws open door to CIBM access

    Foreign investors looking to put their money into China’s interbank bond market (CIBM) are welcoming the release of a more accommodative set of guidelines. The rules are an expansion of an announcement made three months ago and are widely seen as a prelude for the inclusion of China’s bond market into global indices.

  • CIBM draws first foreign entry post rule relaxation

    CIBM draws first foreign entry post rule relaxation

    China has registered the first foreign participant to its interbank bond market following its much publicised rule relaxation in February with UK asset manager Insight Investment first across the line on Monday.

  • Panda accounting rules clarification on the way

    Panda accounting rules clarification on the way

    Despite a growing pipeline, Panda bond issuance has been stymied by foreign exchange volatility and regulatory issues around auditing and remittance of proceeds. Market participants are working closely with China on the problems and expect regulators to address the accounting requirements in the coming months.

  • RMB repatriation no hurdle to Hungary’s Panda ambitions

    RMB repatriation no hurdle to Hungary’s Panda ambitions

    China’s curb on capital outflows means the Panda bond market is yet to live up to the excitement generated by a series of high profile transactions last year. But György Barcza, CEO of the Hungary Government Debt Management Agency, is committed to pushing out a transaction even if the ability to repatriate proceeds offshore remains uncertain. Rev Hui reports.

  • MSCI snubs China, delays A-shares inclusion

    MSCI snubs China, delays A-shares inclusion

    Index provider MSCI surprised markets on Tuesday by once again delaying the inclusion of A-shares in its Emerging Markets index. It conceded that China had made some progress, but said the country still has more work to do to tackle concerns over repatriation and restrictions on launching financial products linked to onshore exchanges.

  • Competitive clauses trip up A-shares inclusion

    Competitive clauses trip up A-shares inclusion

    Restrictions on launching A-share linked financial products is one of the remaining hurdles for Chinese equities joining the MSCI. But as solving the issue will require China to relinquish more capital controls, there is unlikely to be a swift conclusion.

  • China-MSCI stalemate: who’ll blink first?

    China-MSCI stalemate: who’ll blink first?

    Much of the debate around MSCI’s decision to not add A-shares has focused on China’s need to reduce its capital controls. But with Beijing unlikely to let go of the reins anytime soon and MSCI strident in its need for reform, the two sides have reached an impossible impasse unless a compromise can be made.

  • Brexit fallout: London to lose shine as RMB hub

    Brexit fallout: London to lose shine as RMB hub

    The market reaction to the UK’s surprise decision to leave the European Union has been immediate with stocks falling, the pound weakening and the country downgraded by international rating agencies. But market participants are worried that the worse has yet to come and London could be set to lose its shine as a premium renminbi hub.

  • Which city could steal London’s RMB crown?

    Which city could steal London’s RMB crown?

    The outcome of the Brexit referendum has cast a shadow over London’s ability to maintain its status as Europe’s foremost RMB business hub. In this lowdown, GlobalRMB pits three other European capitals – Frankfurt, Luxembourg, and Paris – against the City as the most likely contenders for Europe’s RMB crown.

  • Shanghai Clearing House to launch FTZ bond market in May

    Shanghai Clearing House to launch FTZ bond market in May

    Shanghai Clearing House (SHCH) plans to launch a Shanghai Free Trade Zone (FTZ) offshore renminbi bond market in May, according to documents seen by GlobalRMB.

  • Bankers question need for China’s FTZ CNH bonds

    Bankers question need for China’s FTZ CNH bonds

    China’s push for an onshore CNH bond market is quickly taking shape with Shanghai International Port Group (SIPG) mandating Bank of China (BoC) to arrange a sale. But the scheme’s biggest challenge is likely to be overcoming the market’s widespread scepticism. Carrie Hong and Rev Hui report.

  • Euroclear, LCH.Clearnet enlisted in London’s RMB GDR efforts

    Euroclear, LCH.Clearnet enlisted in London’s RMB GDR efforts

    The London Stock Exchange (LSE) could be closing in on an equity trading link for UK-listed depositary receipts by Chinese firms that would see the participation of Euroclear and LCH.Clearnet, GlobalRMB has learned.

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