China: RMB Offshore Market and Capital Account Liberalization

Size: px
Start display at page:

Download "China: RMB Offshore Market and Capital Account Liberalization"

Transcription

1 China: RMB Offshore Market and Capital Account Liberalization Jun Ma 1 Summary This report proposes the next few major steps of RMB internationalization. It argues that to enhance the role of the RMB in international trade settlement and pricing, and as an investment/financing tool and a reserve currency, policy efforts in the coming five years should focus on 1) removing the bottlenecks for the development of the offshore RMB markets, and 2) liberalizing China s capital account and opening its domestic capital markets. The last section of this note lists a range of potential implications of China s capital account liberalization on the financial industry in Mainland China and Hong Kong. The main part of this note is an English summary of a policy study sponsored by China Finance- 40 Forum on RMB offshore market and capital account liberalization. This study was originally written in Chinese by a team led by Jun Ma. This study proposes the next few major steps of RMB internationalization. It argues that to enhance the role of the RMB in international trade settlement and pricing, and as an investment/financing tool and a reserve currency, policy efforts in the coming five years should focus on 1) removing the bottlenecks for the development of the offshore RMB markets, and 2) liberalizing China s capital account and opening its domestic capital markets. The last section of this note lists a range of potential implications of China s capital account liberalization on the financial industry in Mainland China and Hong Kong. Macro considerations 1 Jun Ma, CF40 member,chief Economist for Greater China, Deutsche Bank. 1

2 The offshore market is necessary part of the internationalization of the RMB, if the RMB is to become a major global currency. The Triffin dilemma does not necessarily pose a constraint on RMB internationalization, as long as its internationalization is conducted with an open capital account. The model of exporting RMB only via the trade channel is not sustainable. The risks of RMB internationalization and offshore market to China s domestic macroeconomic and financial stability including their impact on money supply, FX reserves, interest rates, the exchange rate, and the external balance sheet-- are quantifiable and manageable in the coming few years. The RMB offshore market Hong Kong should become the most important RMB offshore market and serve wholesale function among the various RMB offshore markets. Other offshore markets should play a role similar to retailers. By 2015, the RMB deposits in Hong Kong will likely rise to RMB2.5tn, the outstanding RMB bonds to exceed RMB1tn, and the daily RMB FX transaction to rise to RMB100bn. In promoting the offshore market in Hong Kong, policies should simultaneously support the development of the RMB recycling mechanism as well as the external circulation mechanism (including third-party usage of the RMB). In the medium term, the amount of offshore RMB for external circulation should rise to 50% of the total. A main role of Singapore s RMB offshore market should be providing RMB services to South East Asia countries. London has the potential to become the second largest offshore RMB market next to Hong Kong. Due to risk considerations, it may be too early to develop a full-fledged RMB offshore market in Mainland China (serving non-residents). Capital account liberalization 2

3 Without capital account liberalization, the internationalization of the RMB can only achieve less than 10% of its potential. Capital controls, if not removed, will become the key bottleneck for RMB internationalization in the coming years. Currently, the openness of China s domestic capital markets is less than 1%, vs 10-30% in most emerging market economies. It is perfectly feasible to liberalize the capital account and domestic capital markets in the coming five years with endangering macroeconomic stability, given the structural trend of a rapid decline in China s trade surplus and sharp rise in China s ODI. China should aim to raise the openness of its domestic bond market from less than 1% to 5-7% in the next five years. China should also speed up the pace of its opening the A share market. Measures to liberalize cross-border RMB investments are substitutable for measures to liberalize the capital account and opening the capital markets. Therefore, these two sets of reforms RMB internationalization for capital account transactions, and FX decontrol should go hand in hand. 18 policy recommendations Based on the above principles, we proposed a set of 18 policy measures for promoting the further development of the offshore markets and for opening the capital account and capital markets. We classify these proposals under three headings below. RMB trade settlement 1. Simplify the documentation requirement for RMB trade settlement; 2. Enhance the transparency and consistency of RMB trade settlement policy; 3. Promote the use of the RMB as a pricing currency for commodities. 4. Encourage the entry of banks from South East Asian countries in China, so that they can help promote the use of RMB for trade and investment activities. 5. Remove the remaining bottlenecks for RMB FDI and RMB ODIs. 3

4 Policies to promote the development of the RMB offshore market 6. Ensure RMB liquidity provision in the offshore market; 7. Encourage the listing and trading of RMB bonds, equities and other financial products in the offshore market; 8. Promote the 3rd party usage of the RMB in the offshore market; 9. Relax the NOP restrictions by HKMA on banks RMB businesses; 10. Establish CNH interest and FX fixings and develop CNH repo and future markets; 11. Establish a RMB clearing system in Singapore modeled after Hong Kong 12. Establish a CHIPS-like RMB cross-border payments and clearing system. Policies to liberalize the capital account 13. Increase the annual limit for FX conversion by Chinese individuals to USD200,000 per person per year, and permit each corporates to purchase FX up to USD2mn per year; 14. Significantly increase the QFII quota and the quota for foreign institutional investors invest in China s interbank bond market; 15. Permit RMB fund raisings by non-resident corporates on the Panda bond market and the International Board of Shanghai Stock Exchange, and from banks; 16. Gradually open the domestic RMB products market to non-residents, at a pace consistent with the development of the offshore RMB market; 17. Increase the flexibility (volatility) of the RMB exchange rate (vs the USD) by 3-5 fold in order to discourage excessive short-term capital flows; 18. Be prepared to introduce prudential measures (such as a withholding tax) to replace administrative controls on FX conversion when necessary. Impact of Capital Account Liberalization on China s Financial Industry We see several implications of capital account liberalization (together with the required increase in interest rate and exchange rate flexibility) on China and Hong Kong s financial sector: 4

5 A slower pace of RMB appreciation but significantly higher exchange rate volatility; Reduction in net interest margin for Chinese banks; Greater opportunity for global expansion, especially for larger financial institutions; Higher fee incomes including a surge in FX trading commission and income from derivative transactions; Greater access to cheap global funding; Ability to offer a wider range of global financial products to China s domestic investors; Significantly larger two-way capital flows (especially portfolio flows) via Hong Kong to and from Mainland China, benefiting Hong Kong-based financial institutions. 5

RMB Internationalization and RMB Offshore Markets Development

RMB Internationalization and RMB Offshore Markets Development RMB Internationalization and RMB Offshore Markets Development Dr. Qin Xiao Former Chairman, China Merchants Group and China Merchants Bank Council Member, Hong Kong Financial Services Development Council

More information

RMB Internationalization & Hong Kong. Graham Coker Trade Director, Transaction Services UK & Ireland

RMB Internationalization & Hong Kong. Graham Coker Trade Director, Transaction Services UK & Ireland RMB Internationalization & Hong Kong Graham Coker Trade Director, Transaction Services UK & Ireland RMB Internationalisation China s Market Reform Agenda RMB is called CNY onshore and CNH offshore. Hong

More information

Overview of Offshore RMB

Overview of Offshore RMB Overview of Offshore RMB Jaunary 214 Lee Beng-Hong Head of Markets, China Macro background Liberalization of RMB China fully liberalized the use of RMB for cross border trade settlement in March 212 close

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014

ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014 ECONOMIC REVIEW(A Monthly Issue) March, April, 2015 2014 Economics & Strategic Planning Department http://www.bochk.com Effects The of Reasons CNH Exchange Why the Rate Singapore on Offshore Economy RMB

More information

Overview of RMB Internationalisation

Overview of RMB Internationalisation Overview of RMB Internationalisation Candy Ho Head of RMB Business Development, Asia Pacific Date: 8 May 2013 Why is RMB important? China overtook US as the largest goods trading nation in 2012 China:

More information

CNH Market--A Burgeoning Offshore RMB Market

CNH Market--A Burgeoning Offshore RMB Market CNH Market--A Burgeoning Offshore RMB Market Liu Chenggang from Bank of China September, 2011 Contents I. Evolution of CNH Market II. Introduction ti of CNH Market III. Future Development of CNH Market

More information

King & Wood Mallesons /

King & Wood Mallesons / KWM Connect QFII and RQFII a practical insight to recent developments by Richard Mazzochi, Minny Siu and Hayden Flinn King & Wood Mallesons / KWM Connect 1 In the opening session of the Asia Financial

More information

Demand for RMB and Financial Services through Hong Kong by German Businesses

Demand for RMB and Financial Services through Hong Kong by German Businesses Demand for RMB and Financial Services through Hong Kong by German Businesses Think Asia, Think Hong Kong Munich, 11 September 2014 Think Asia, Think Hong Kong Munich, 11 September 2014 Page 1 Asia: Key

More information

RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN

RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN BUDAPEST RENMINBI INTITIATIVE PAPERS No1 RENMINBI - A NEW SETTLEMENT CURRENCY WAS BORN Author: Szilárd Erhart, Head of th MNB s Renminbi Project, Central Bank of Hungary While China s weight in international

More information

A REGIONAL GATEWAY FOR RMB. Singapore

A REGIONAL GATEWAY FOR RMB. Singapore A REGIONAL GATEWAY FOR RMB Singapore GROWING INTERNATIONAL AND REGIONAL ROLE OF THE RMB Rising Potential for International use of RMB China accounts for more than 10% of global trade and investment flows

More information

The Chinese corporate credit bond market. Broad prospects for development

The Chinese corporate credit bond market. Broad prospects for development The Chinese corporate credit bond market Broad prospects for development Dear Mr. Martin Scheck, Mr. Spencer Lake, Distinguished Guests, Ladies and Gentlemen, Good Morning! I am very pleased to attend

More information

RMB solutions for importers and exporters

RMB solutions for importers and exporters RMB solutions for importers and exporters Unravel the complexities of RMB Mind the gap The potential Share of world trade vs payments The proof of the pudding Percentage of China s trade in RMB RMB 13th

More information

Taking stock of China s external debt: low indebtedness, but rapid growth is a concern

Taking stock of China s external debt: low indebtedness, but rapid growth is a concern 1991 1993 1995 1997 1999 21 23 25 27 29 211 213 1991 1992 1993 1994 1995 1996 1997 1998 1999 2 21 22 23 24 25 26 27 28 29 21 211 212 213 ECONOMIC ANALYSIS Taking stock of China s external debt: low indebtedness,

More information

Latest developments in the international RMB market

Latest developments in the international RMB market Fourth Meeting of London Hong Kong RMB Forum 12 November 2014 The private-sector led London Hong Kong Forum to promote cooperation on the development of international renminbi (RMB) business (the Forum

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Use of currencies In international trade by Marc Auboin, Counsellor

Use of currencies In international trade by Marc Auboin, Counsellor Use of currencies In international trade by Marc Auboin, Counsellor 3 basic realities and 2 questions Trade finance: systemic to trade. Little trade paid cash - 70-80% of world trade relies on trade credit/guarantees.

More information

Working Group on U.S. RMB Trading and Clearing New York, January 2016. Discussion Outline: Possible RMB Clearing Operating Models

Working Group on U.S. RMB Trading and Clearing New York, January 2016. Discussion Outline: Possible RMB Clearing Operating Models Working Group on U.S. RMB Trading and Clearing New York, January 2016 Discussion Outline: Possible RMB Clearing Operating Models The purpose of this note to is to introduce possible RMB clearing operating

More information

Shanghai-Hong Kong Stock Connect 2015.01.07

Shanghai-Hong Kong Stock Connect 2015.01.07 Shanghai-Hong Kong Stock Connect 2015.01.07 The launch of Stock Connect further expands the crossborder RMB investment channel Shanghai-Hong Kong Stock Connect officially launched on 17 Nov 2014, enabling

More information

Buyers Guide to RMB Bonds. Main author: Bryan Collins

Buyers Guide to RMB Bonds. Main author: Bryan Collins Buyers Guide to RMB Bonds Main author: Bryan Collins RMB bond investors need to do their homework first The RMB bond market is a relatively new and exciting investment opportunity, with RMB bond having

More information

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012

INDUSTRIAL AND COMMERCIAL BANK OF CHINA ICBC: Your Global Portal to RMB Market. July 2012 ICBC: Your Global Portal to RMB Market July 2012 Content General Introduction Investment in RMB Services Solution 1 General Introduction to Renminbi (RMB) RMB Renminbi (commonly abbreviated as RMB) is

More information

An Overview of Offshore RMB Market. Nov 2013

An Overview of Offshore RMB Market. Nov 2013 An Overview of Offshore RMB Market Nov 2013 Contents 1. Outlook of RMB Internationalisation 2. Implications for Offshore RMB Bonds 2 Section 1 Outlook of RMB Internationalisation 3 RMB The next international

More information

Eddie Yue: Renminbi a new era and the role of Hong Kong

Eddie Yue: Renminbi a new era and the role of Hong Kong Eddie Yue: Renminbi a new era and the role of Hong Kong Keynote address by Mr Eddie Yue, Deputy Chief Executive of the Hong Kong Monetary Authority, at the Global Offshore RMB Funding Forum 2012, Hong

More information

The Future of the Renminbi and Its Impact on the Hong Kong Dollar Eddie Yue and Dong He

The Future of the Renminbi and Its Impact on the Hong Kong Dollar Eddie Yue and Dong He The Future of the Renminbi and Its Impact on the Hong Kong Dollar Eddie Yue and Dong He This article outlines our thoughts on the following three issues. First, will the renminbi become an international

More information

Structure Products Asia 2006

Structure Products Asia 2006 Structure Products Asia 2006 China Structured Products : Innovation and Evolution Chin-Chong Liew Partner and Head of Derivatives & Structured Products Asia (Ex-Japan) 23 November 2006 Hong Kong 2 Chinese

More information

Ushering in A New Era of Renminbi Liberalization

Ushering in A New Era of Renminbi Liberalization Treasury and Trade Solutions Ushering in A New Era of Renminbi Liberalization August 2015 Understanding and the Renminbi Liberalization Cross border controls in continue to relax Understanding the RMB

More information

ECONOMIC REVIEW(A Monthly Issue) March, 2014

ECONOMIC REVIEW(A Monthly Issue) March, 2014 ECONOMIC REVIEW(A Monthly Issue) March, 2014 Economics & Strategic Planning Department http://www.bochk.com An Analysis on the Latest Developments and Comparative Advantages of Offshore RMB Centers Liu

More information

Renminbi (RMB) corporate and treasury services in London

Renminbi (RMB) corporate and treasury services in London Renminbi (RMB) corporate and treasury services in London City of London RENMINBI SERIES London offers an extensive range of RMB corporate banking services including: o Corporate accounts; o Term deposits;

More information

Gateway to China: How using the renminbi could transform your China business

Gateway to China: How using the renminbi could transform your China business Gateway to China: How using the renminbi could transform your China business The rise of renminbi Over the past three decades, China s GDP has grown at an average rate of 10% a year moving the country

More information

UOB launches yuan products for investors to participate in China s growth

UOB launches yuan products for investors to participate in China s growth UOB launches yuan products for investors to participate in China s growth New Renminbi deposit and fund products benefit from an appreciating Renminbi and its increasing internationalisation SINGAPORE,

More information

China's Global Integration - Developments in China s Onshore RMB market

China's Global Integration - Developments in China s Onshore RMB market China's Global Integration - Developments in China s Onshore RMB market Thank you Martin for your kind words It is a pleasure to be here today.. I m grateful to be given the chance to share a platform

More information

The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products

The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products The Global Development of RMB Forex Futures, and TAIFEX s RMB Forex Futures Products (Updated October 1, 2015) Global products utilize a variety of underlyings, including individual stocks, stock indexes,

More information

ASEAN Capital Market Integration and Lessons from the European Union

ASEAN Capital Market Integration and Lessons from the European Union ASEAN Capital Market Integration and Lessons from the European Union 44 th IAFEI World Congress: Global Recovery Amidst Reforms Makati Shangri-la 16 October 2014 Thiam Hee Ng, Senior Economist Asian Development

More information

Introduction of Free Trade Zone RMB Bond Business

Introduction of Free Trade Zone RMB Bond Business Introduction of Free Trade Zone RMB Bond Business Yidan WANG wangyidan@shclearing.com April 2016 London Contents Company Overview Business Background Business Model Future Plan 第 四 章 A brief look into

More information

Cross-Border Capital Flows Statistics and Its Implication for Monitoring in China

Cross-Border Capital Flows Statistics and Its Implication for Monitoring in China First IMF Statistical Forum Statistics for Global Economic and Financial Stability Cross-Border Capital Flows Statistics and Its Implication for Monitoring in China Wang Xiaoyi State Administration of

More information

Asia Market Intelligence Hong Kong SAR

Asia Market Intelligence Hong Kong SAR Asia Market Intelligence Hong Kong SAR Presence The Hongkong and Shanghai Banking Corporation Limited (HSBC) is one of the largest banks incorporated in the Hong Kong Special Administrative Region (SAR).

More information

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE.

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Fidelity Funds Société d Investissement à Capital Variable 2a, Rue Albert Borschette B.P. 2174 L-1021 Luxembourg R.C.S. B34036 Tél: +352 250 404 (1) Fax: +352 26 38 39 38 THIS DOCUMENT IS IMPORTANT AND

More information

Expert Briefing. and inbound china. The Offshore RMB Group. Briefing notes. The group is sponsored by Standard Chartered

Expert Briefing. and inbound china. The Offshore RMB Group. Briefing notes. The group is sponsored by Standard Chartered Expert Briefing Date 8 May 2014 Expert briefing Taking control of your RMB FX risk and lowering your borrowing costs in outbound and inbound china Presenters Robert Minikin, Global FX Strategy team, Standard

More information

The FTSE China Onshore Bond Index Series

The FTSE China Onshore Bond Index Series Research The FTSE China Onshore Bond Index Series ftserussell.com May 2015 China is now the world s largest economy (when measured by purchasing power parity (PPP) 1 ) and the largest trading nation 2.

More information

Market compass for China. The coming wave of globalisation

Market compass for China. The coming wave of globalisation Market compass for China The coming wave of globalisation The People s Republic of China An exceptional set of records For the past two decades, China s economy has reshaped the world with double digit

More information

Investing in Asia s Debt Markets

Investing in Asia s Debt Markets Investing in Asia s Debt Markets Alexandre Bouchardy, CFA Head of Fixed Income Asia April 2013 Content How to Capture the Asian Growth Story Hard or Local Currency Bonds? Risk and Return Opportunities

More information

Introductory Guide to RMB Currency Futures

Introductory Guide to RMB Currency Futures Introductory Guide to RMB Currency Futures RMB Internationalisation The opening up of Mainland China now is creating more and more business opportunities. China is the second largest economy and a major

More information

Introduction for Financial Services in China (Shanghai) Pilot Free Trade Zone. Mar.2014

Introduction for Financial Services in China (Shanghai) Pilot Free Trade Zone. Mar.2014 Introduction for Financial Services in China (Shanghai) Pilot Free Trade Zone Mar.2014 Contents I II About Shanghai FTZ Opportunities For FTZ Company III ICBC Preparation and Capability Part I. About Shanghai

More information

China Merchants Bank Co., Ltd. 2013 Annual Results Announcement

China Merchants Bank Co., Ltd. 2013 Annual Results Announcement China Merchants Bank Co., Ltd. 2013 Annual Results Announcement Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks

More information

An offshore RMB market The Hong Kong story Keynote speech 4th Offshore RMB Markets Conference

An offshore RMB market The Hong Kong story Keynote speech 4th Offshore RMB Markets Conference Speech An offshore RMB market The Hong Kong story Keynote speech 4th Offshore RMB Markets Conference Alexa Lam Deputy Chief Executive Officer Securities and Futures Commission 13 March 2014 Ladies and

More information

IV. Special feature: Foreign currency deposits of firms and individuals with banks in China

IV. Special feature: Foreign currency deposits of firms and individuals with banks in China Robert N McCauley (+852) 2878 71 RMcCauley@bis.org.hk YK Mo (+852) 2878 71 IV. Special feature: deposits of firms and individuals with banks in China In principle, an economy with capital controls can

More information

Development and utilisation of financial derivatives in China

Development and utilisation of financial derivatives in China Development and utilisation of financial derivatives in China Jinan Yan 1 1. Development of the financial derivatives market in China China has made tremendous strides after three decades of reforms and

More information

PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund

PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund PRODUCT KEY FACTS BOCHK RMB Fixed Income Fund a sub-fund of the BOCHK Investment Funds Issuer: BOCI-Prudential Asset Management Limited 29 April 2016 This statement provides you with key information about

More information

China: the evolution of foreign exchange controls and the consequences of capital flows

China: the evolution of foreign exchange controls and the consequences of capital flows China: the evolution of foreign exchange controls and the consequences of capital flows People s Bank of China I. Introduction With the adoption of market-oriented economic system reforms and the opening-up

More information

Asia Economics Comment

Asia Economics Comment June 6, 13 Goldman Sachs Global Economics, Commodities and Strategy Research Li Cui, MK Tang, Fiona Lake Research Report Gao Hua Economics Research at https://portal.ghsl.cn China: Capital account reforms

More information

The rise of the redback II

The rise of the redback II Macro Qu Hongbin Co-Head of Asian Economic Research, Chief Economist The Hongkong and Shanghai Banking Corporation Limited +852 2822 2025 hongbinqu@hsbc.com.hk Qu Hongbin is Managing Director, Co-Head

More information

Corporate and Investment Banking. Trading in Chinese Renminbi

Corporate and Investment Banking. Trading in Chinese Renminbi Corporate and Investment Banking Trading in Chinese Renminbi Trading in Chinese Renminbi Standard Bank your trade partner in, for and across Africa Trade and payment solutions using renminbi As China-Africa

More information

Development of the Renminbi Market in Hong Kong SAR: Assessing Onshore-Offshore Market Integration

Development of the Renminbi Market in Hong Kong SAR: Assessing Onshore-Offshore Market Integration WP/13/268 Development of the Renminbi Market in Hong Kong SAR: Assessing Onshore-Offshore Market Integration R. Sean Craig, Changchun Hua, Philip Ng, and Raymond Yuen 213 International Monetary Fund WP/13/268

More information

Shanghai-Hong Kong Stock Connect to Boost Reciprocal Investment in RMB Securities

Shanghai-Hong Kong Stock Connect to Boost Reciprocal Investment in RMB Securities Shanghai-Hong Kong Stock Connect to Boost Reciprocal Investment in RMB Securities Eiichi Sekine Chief Representative, Beijing Representative Office Nomura Institute of Capital Markets Research I. Plans

More information

RMB internationalisation: Implications for the global financial industry

RMB internationalisation: Implications for the global financial industry White paper RMB internationalisation: Implications for the global financial industry Key contributors Understand what RMB internationalisation means for you Table of contents China is big, but the RMB

More information

The Introduction of China (Shanghai) Pilot Free Trade Zone. May. 2014

The Introduction of China (Shanghai) Pilot Free Trade Zone. May. 2014 The Introduction of China (Shanghai) Pilot Free Trade Zone May. 2014 C o n t e n t 1 FTZ Background 2 FTZ General Policy Framework 3 FTZ Financial Solution C o n t e n t 1 FTZ Background I FTZ Background

More information

CHINA S OFFSHORE RMB MARKET

CHINA S OFFSHORE RMB MARKET INTERNATIONAL SERVICES WHITE PAPER CHINA S OFFSHORE RMB MARKET AN OVERVIEW FOR MANAGERS AND FINANCIAL PERSONNEL By Daniel Joseph, PNC s International Treasury Management group PNC offers a library of materials

More information

Renminbi banking business in Hong Kong

Renminbi banking business in Hong Kong Renminbi banking business in Hong Kong by the External Department Hong Kong s renminbi banking business was launched in early 24 to facilitate crossborder tourist spending and to further strengthen economic

More information

Hong Kong Economic Update MAY 2014

Hong Kong Economic Update MAY 2014 Hong Kong Economic Update MAY 2014 Summary Economy Hong Kong s economy grew 2.5 per cent (year-on-year) in the first quarter. This is the slowest quarterly growth in 18 months and is lower than the market

More information

Danske Markets, CIB & Equities

Danske Markets, CIB & Equities Capital Markets Day 4 December 2002 Danske Markets, CIB & Equities www.danskebank.com 1 Mission Statement Danske Bank wants to be a dominant Scandinavian trading bank with a broad European product palette

More information

Exchange Thoughts Brown Brothers Harriman s ETF Newsletter

Exchange Thoughts Brown Brothers Harriman s ETF Newsletter Brown Brothers Harriman s ETF Newsletter Chinese ETF Launches in US and Europe Signal New Opportunities Introduction... 3 Developments in the RQFII Space... 4 Routes to Market: Local Partner or Independent?...

More information

ECONOMIC REVIEW(A Monthly Issue) October, April, 2014

ECONOMIC REVIEW(A Monthly Issue) October, April, 2014 ECONOMIC REVIEW(A Monthly Issue) October, April, 2014 Economics & Strategic Planning Department http://www.bochk.com Latest The Reasons Developments Why the of the Singapore Offshore Economy RMB Bond Has

More information

Asian Stock Markets in 2015:

Asian Stock Markets in 2015: Asian Stock Markets in 2015: Expected trends and the role of Asian Funds Passports Dr. Andrew Freris CEO, Ecognosis Advisory Ltd March 2015 1 Summary, Part I The Asian markets which outperformed in 2014,

More information

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day *

Industrial and Commercial Bank of China Limited Dealing frequency: Daily on each business day * APRIL 2016 This statement provides you with key information about Income Partners RMB Bond Fund (the Sub-Fund ). This statement is a part of the offering document and must be read in conjunction with the

More information

ew developments in the Panda bond market

ew developments in the Panda bond market ew developments in the Panda bond market An examination of the current status of Panda bonds apropos their use as an alternative source of renminbi funding by Japanese corporations Ken Muramatsu Securities

More information

Financial infrastructure in Hong Kong. Foreword. Foreword

Financial infrastructure in Hong Kong. Foreword. Foreword Contents Page Foreword 28 Introduction 30 Importance of financial infrastructure 31 Strategic objective 32 Financial infrastructure in Hong Kong 34 Payment systems 35 Debt securities settlement system

More information

3. Foreign Exchange Management

3. Foreign Exchange Management 3. Foreign Exchange Management Foreign Exchange Market Operations The Bank kept on pursuing dynamic stability of the NTD exchange rate under a managed floating regime in 2004. During the year, the US dollar

More information

1.1 This offer is only applicable to customer who holds at least one RMB Savings Account upon successful

1.1 This offer is only applicable to customer who holds at least one RMB Savings Account upon successful Offer Terms: 1. More Deposit,Higher Interest Rate 1.1 This offer is only applicable to customer who holds at least one RMB Savings Account upon successful opening of a BIA during the Promotion Period (

More information

Debt securities statistics: the Bank of Thailand s experience 1

Debt securities statistics: the Bank of Thailand s experience 1 Debt securities statistics: the Bank of Thailand s experience 1 Pusadee Ganjarerndee 2 Significant role of debt securities on the Thai economy Prior to the 1997 financial crisis, most capital mobilization

More information

CHINA (SHANGHAI) FREE TRADE ZONE Implications and Considerations. Huabin Wang

CHINA (SHANGHAI) FREE TRADE ZONE Implications and Considerations. Huabin Wang CHINA (SHANGHAI) FREE TRADE ZONE Implications and Considerations Huabin Wang Assistant General Manager Bank of China Limited, London Branch September 23, 2014 Table of Contents 1 CHINA (SHANGHAI) FREE

More information

CROSS-BORDER ACCESS PLATFORM. Mainland Investors. International Investors. Equity. Commodities FIC. Mainland Products. International Products

CROSS-BORDER ACCESS PLATFORM. Mainland Investors. International Investors. Equity. Commodities FIC. Mainland Products. International Products 1 OVERVIEW Hong Kong is entering a new phase as a leading international financial centre. The scale and depth of the world s interaction with Mainland China s markets and investors are being transformed

More information

DCI Investment Trust. Da Cheng China RMB Fixed Income Fund. Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum )

DCI Investment Trust. Da Cheng China RMB Fixed Income Fund. Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum ) DCI Investment Trust Da Cheng China RMB Fixed Income Fund Addendum to the Explanatory Memorandum dated January 2012 ( Explanatory Memorandum ) IMPORTANT NOTE: This Addendum is supplemental to and forms

More information

Hong Kong. abc. *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations

Hong Kong. abc. *Employed by a non-us affiliate of HSBC Securities (USA) Inc, and is not registered/qualified pursuant to FINRA regulations July 212 Steven Sun* Equity Strategist The Hongkong and Shanghai Banking Corporation Limited +852 2822 4298 stevensun@hsbc.com.hk Roger Xie* Equity Strategist The Hongkong and Shanghai Banking Corporation

More information

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund )

HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) PRODUCT KEY FACTS HFT (HK) CHINA INVESTMENT SERIES II HFT (HK) CHINA HIGH YIELD BOND FUND (the Sub-Fund ) Issuer: HFT Investment Management (HK) Limited April 2015 This statement provides you with key

More information

DOMINION GLOBALIZATION WORKSHOP

DOMINION GLOBALIZATION WORKSHOP DOMINION GLOBALIZATION WORKSHOP Financial Sector Dennis Encarnation Harvard University For more information, please contact me at www.encarnation.com SERVICES Financial Services & Capital Markets Topics:

More information

in Hong Kong's Offshore RMB Market

in Hong Kong's Offshore RMB Market lakyara Development of Dim Sum Bonds in Hong Kong's Offshore RMB Market Jenny Yee Wong 12. November. 2012 Executive Summary Supported by the Chinese government, Hong Kong has been developing an offshore

More information

HKEX GROUP STRATEGIC PLAN 2013-2015

HKEX GROUP STRATEGIC PLAN 2013-2015 HKEX GROUP STRATEGIC PLAN 2013-2015 Page 1 of 7 1. OVERVIEW Our Strategic Plan 2013-2015 builds upon the growth-oriented strategy of the past three years and aims to take the Group into a new phase of

More information

Multi-currency cross-border payment arrangements between Hong Kong and Mainland China

Multi-currency cross-border payment arrangements between Hong Kong and Mainland China Multi-currency cross-border payment arrangements between Hong Kong and Mainland China by the Financial Infrastructure Department The establishment of multi-currency cross-border payment arrangements between

More information

Pilot Free Trade Zone Shanghai

Pilot Free Trade Zone Shanghai Pilot Free Trade Zone Shanghai Shanghai s first Free Trade zone was launched in September 2013, targeted to make Shanghai an international trade and finance hub. It was established on the strategic decision

More information

HSBC in China. Presentation to Citi Global Financial Conference. Helen Wong Group General Manager, President and Chief Executive Officer, HSBC China

HSBC in China. Presentation to Citi Global Financial Conference. Helen Wong Group General Manager, President and Chief Executive Officer, HSBC China HSBC in China Presentation to Citi Global Financial Conference Helen Wong Group General Manager, President and Chief Executive Officer, HSBC China November 2012 Forward-looking statements This presentation

More information

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment

96 97 98 99 00 01 02 03 04 05 06 07 08* FDI Portfolio Investment Other investment Chartbook Contact: Sebastian Becker +49 69 91-3664 Global Risk Analysis The unwinding of Yen carry trades Some empirical evidence 3 2 1-1 -2-3 -4 October 31, 28 Many years before the sub-prime crisis hit

More information

CSOP WTI Oil Annual Roll December Futures ER ETF. www.csopasset.com^

CSOP WTI Oil Annual Roll December Futures ER ETF. www.csopasset.com^ IMPORTANT: Investments involve risks. Investment value may rise or fall. Past performance information presented is not indicative of future performance. Investors should refer to the Prospectus and the

More information

Frequent Asked Questions

Frequent Asked Questions Frequent Asked Questions 1. What are RMB currency futures? What will be the underlying currency pair? RMB currency futures are futures contracts based on the exchange rates between RMB and other currencies.

More information

Derivatives Market Trading Division July 2012. Understanding RMB Currency Futures Contract (USD/CNH)

Derivatives Market Trading Division July 2012. Understanding RMB Currency Futures Contract (USD/CNH) Derivatives Market Trading Division July 2012 Understanding RMB Currency Futures Contract (USD/CNH) Part A Trading Arrangements Table of Contents 1 Key Milestones of Development of Offshore RMB market

More information

Legislative Council Panel on Financial Affairs. Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong

Legislative Council Panel on Financial Affairs. Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong CB(1)870/14-15(04) For discussion on 1 June 2015 Legislative Council Panel on Financial Affairs Proposal to Attract Enterprises to Establish Corporate Treasury Centres in Hong Kong PURPOSE In his 2015-16

More information

Boom time for the offshore RMB bond market

Boom time for the offshore RMB bond market Boom time for the offshore RMB bond market More centres of issuance, easier access for international investors and the step-by-step relaxation of capital controls - all spell surging growth for China s

More information

China: Trade Facilitation Reform and Economic Development

China: Trade Facilitation Reform and Economic Development China: Trade Facilitation Reform and Economic Development Zhang Yansheng Institute for International Economic Research National Development and Reform Commission Development of China s international trade

More information

The RMB market in France Becoming a global currency

The RMB market in France Becoming a global currency The RMB market in France Becoming a global currency 元 (Renminbi): BECOMING A GLOBAL CURRENCY Over the last few years, the Renminbi (RMB) internationalization has been growing steadily. Measures have been

More information

LSEG Information Services Division. Investor and Analyst presentation. Mark Makepeace Group Director of Information Services, CEO of FTSE

LSEG Information Services Division. Investor and Analyst presentation. Mark Makepeace Group Director of Information Services, CEO of FTSE LSEG Information Services Division Investor and Analyst presentation Mark Makepeace Group Director of Information Services, CEO of FTSE 1 Table of Contents SECTION 1) Introduction by Xavier Rolet (CEO,

More information

Private Equity in Asia

Private Equity in Asia Private Equity in Asia October 21 Asia private equity, in particular China, has increasingly attracted attention from institutional investors due to the region s faster economic recovery, greater growth

More information

What happened so far?

What happened so far? Marcus Wassmuth June 15th, 2011 Use of CNY in International Trade Settlement German Chamber Shanghai Workshop Controlling Marcus Wassmuth, June 15th, 2011, Page 1 Titel der Präsentation, Referent, Seite

More information

Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform

Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform May 13, 2015 Bank of Japan Toward Further Development of the Tokyo Financial Market: Issues on Repo Market Reform Keynote Speech at the Futures Industry Association Japan (FIA Japan) Financial Market Conference

More information

CHINA (SHANGHAI) PILOT FREE TRADE ZONE. SHANGHAI WAIGAOQIAO FREE TRADE ZONE UNITED DEVELOPMENT CO., LTD. April/2015

CHINA (SHANGHAI) PILOT FREE TRADE ZONE. SHANGHAI WAIGAOQIAO FREE TRADE ZONE UNITED DEVELOPMENT CO., LTD. April/2015 CHINA (SHANGHAI) PILOT FREE TRADE ZONE SHANGHAI WAIGAOQIAO FREE TRADE ZONE UNITED DEVELOPMENT CO., LTD. April/2015 CSPFTZ New Process----Expansion China(Shanghai)Pilot Free Trade Zone-28.78km 2 A Shanghai

More information

The Offshore Renminbi Market and Australia

The Offshore Renminbi Market and Australia The Offshore Renminbi Market and Australia Eden Hatzvi, William Nixon and Michelle Wright* The Chinese authorities have continued to make progress in internationalising China s currency, the renminbi (RMB).

More information

Hot Topics in International Debt Capital Markets. Paul Browne Louis-Maël Cogis Jay Lee Enrico Leone Piers Summerfield

Hot Topics in International Debt Capital Markets. Paul Browne Louis-Maël Cogis Jay Lee Enrico Leone Piers Summerfield Hot Topics in International Debt Capital Markets Paul Browne Louis-Maël Cogis Jay Lee Enrico Leone Piers Summerfield October 2015 Who we are and what we will cover Introduction to the team Things we will

More information

HONG KONG S INTERNATIONAL BANKING CENTER: IMPLICATIONS FOR SPAIN. Alicia García-Herrero (*)

HONG KONG S INTERNATIONAL BANKING CENTER: IMPLICATIONS FOR SPAIN. Alicia García-Herrero (*) HONG KONG S INTERNATIONAL BANKING CENTER: IMPLICATIONS FOR SPAIN Alicia García-Herrero (*) (*) Alicia García-Herrero is Chief Economist for Emerging Markets at BBVA and is affiliated with the University

More information

Business Financing and Capital Market Reforms

Business Financing and Capital Market Reforms PECC-SINCPEC International Conference Competitiveness Enhancement: Business Financing and Capital Market Reforms in China STUART H. LECKIE, O.B.E., J.P., F.I.A., F.S.A. CHAIRMAN, STIRLING FINANCE LIMITED

More information

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH)

ANZ ETFS PHYSICAL RENMINBI ETF. (ASX Code: ZCNH) ANZ ETFS PHYSICAL RENMINBI ETF (ASX Code: ZCNH) INVESTMENT BUILDING BLOCKS FOR A CHANGING WORLD Introducing a suite of innovative exchange traded funds (ETFs) designed for Australian investors by ANZ

More information

Asset Management Industry Development in Hong Kong, Singapore and China

Asset Management Industry Development in Hong Kong, Singapore and China Asset Management Industry Development in Hong Kong, Singapore and China by Terence Chong Vivian Wong Working Paper No. 7 March 2012 Institute of Global Economics and Finance The Chinese University of Hong

More information

The TAIFEX market development

The TAIFEX market development The TAIFEX market development Mezhgan Qabool, Business Development Manager at Eurex, spoke with Denise Huang from the Business Development Department at TAIFEX about the Taiwanese market attributes. Topics

More information