GlobalRMB Quarterly Review, Q3 2016

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  • New York, New York: BOC picked as US RMB clearing bank

    New York, New York: BOC picked as US RMB clearing bank

    The US is one step closer to becoming a renminbi hub with Bank of China New York officially appointed as the country’s first RMB clearing bank, a major development towards the internationalisation of the currency.

  • Symbolic victory for RMB in the US, say experts

    Symbolic victory for RMB in the US, say experts

    The appointment of a renminbi clearing bank in New York is a political win for the China-US relationship that adds to the currency’s global prestige, but it is unlikely to boost RMB trade or investment in the short term, according to experts.

  • Russia: still in the (RMB) game

    Russia: still in the (RMB) game

    Days after China made the landmark decision to appoint a US renminbi clearing bank, it has made yet another clear political statement by appointing Industrial and Commercial Bank of China Moscow as Russia’s clearing bank, with a bond market link also in the making.

  • Africa shifts up a gear to fulfil RMB potential

    Africa shifts up a gear to fulfil RMB potential

    The usage of renminbi in Africa has long been talked up given China’s status as the continent’s largest trading partner. Developments over the past couple of years have been slow, however, though there are now signs of activity with several African nations visiting Hong Kong in November to learn more about RMB reserves management.

  • Poland seals Europe’s inaugural Panda trade

    Poland seals Europe’s inaugural Panda trade

    Poland became the first European country to issue a Panda bond on Thursday, printing a landmark Rmb3bn ($451m) deal. The depreciating renminbi was not enough to put off foreign investors, while the yield pick-up over other sovereign bonds helped ensure a strong order book. Addison Gong reports.

  • Veolia goes à la carte for landmark Panda

    Veolia goes à la carte for landmark Panda

    Veolia Environnement priced its debut Panda bond on September 1, becoming the first French issuer to tap the onshore Chinese market. The firm was also one of the first corporates to be allowed to repatriate funds out of China despite ongoing capital controls, its treasurer told GlobalRMB.

  • Landmark Shenzhen Connect heralds end of aggregate trading quotas

    Landmark Shenzhen Connect heralds end of aggregate trading quotas

    The Shenzhen-Hong Kong Stock Connect Scheme was officially given the go ahead by China’s State Council on Tuesday, with the Hong Kong Securities and Futures Commission (SFC) making the breakthrough announcement that the entire Stock Connect scheme will now operate without aggregate trading quotas. Exchange traded funds (ETFs) and derivatives are due to come in future expansions.

  • The future of MMA beyond Stock Connect

    The future of MMA beyond Stock Connect

    The upcoming launch of the Shenzhen-Hong Kong Stock Connect will give offshore investors access to close to 90% of China’s domestic stock market. Now the focus for the mutual market access (MMA) scheme will turn to new products including ETFs and bonds.

  • Debut Mulan bond salutes China’s SDR effort, says IBRD

    Debut Mulan bond salutes China’s SDR effort, says IBRD

    The World Bank’s debut IMF special drawing rights (SDR) bond — dubbed a Mulan bond — is an acknowledgement of China’s success in reforming the renminbi, George Richardson, the organisation’s director and global head of capital markets, told GlobalRMB.

  • SDR bond shows way through China accounting roadblock

    SDR bond shows way through China accounting roadblock

    Incompatible accounting standards could soon be a thing of the past for foreign issuers looking to tap into China’s onshore bond market with the World Bank’s upcoming SDR trade providing a template on how to get around this long standing issue.

  • World Bank brings SDR bonds back to life

    World Bank brings SDR bonds back to life

    The World Bank broke a 30 year silence in special drawing rights (SDR) bonds with the sale of the SDR500m ($700m) three year note in China on Wednesday. While the Mulan bond is widely seen as a symbolic gesture to promote the internationalisation of the renminbi, market participants said it is more than just that in spite of the relatively narrow investor base.

  • Official institutions readying for SDR launch

    Official institutions readying for SDR launch

    Institutions have spent months preparing for the launch of the new IMF special drawing rights (SDR) basket on October 1 since the decision to include the RMB was made last year. The mechanics include managing divergent onshore and offshore rates, Jukka Pihlman, global head of central banks and sovereign funds, Standard Chartered, and former IMF official, told GlobalRMB.

  • No big bang for RMB in SDR

    No big bang for RMB in SDR

    In just a few days, the renminbi will be officially included in the International Monetary Fund’s Special Drawing Rights basket — a move widely seen as a validation of the currency’s internationalisation. But the actual impact of the development on fund flows is expected to be limited, market participants told GlobalRMB.

  • RQFII rules relaxed but MSCI challenges remain

    RQFII rules relaxed but MSCI challenges remain

    The quota system under the RMB qualified foreign institutional investor (RQFII) scheme has undergone a total revamp, the Chinese regulators announced on September 5. While the rules represent a further harmonisation of RQFII and QFII schemes, market participants still see obstacles to Chinese assets entering global indices.

  • WFOEs weigh up China’s private fund rules

    WFOEs weigh up China’s private fund rules

    China is continuing its push to establish the renminbi as an investment currency by opening up its private fund industry to wholly foreign-owned firms. While this is likely to spark plenty of interest, market participants said foreign asset managers need to be ready to launch even before registering for a licence.

Publisher: Oliver Hawkins

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