FTZ bonds struggle for survival

When China's free trade zone (FTZ) bond market was launched last December, regulators envisaged it as foreign investors’ fast lane into Chinese fixed income. But one year on, there are doubts over whether the market has a future — only one FTZ bond has been sold, and meanwhile the onshore bond market is enjoying a rapid rise.

  • By Noah Sin
  • 31 Aug 2017

The Shanghai Municipal Government sold the first FTZ bond in December 2016, cracking open a market that allowed foreign investors to use offshore renminbi (CNH) to buy bonds in the onshore market. Those deals then paid back in offshore renminbi at redemption.

The pioneering transaction was good news ...

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Rank Arranger Share % by Volume
1 Bank of China (BOC) 28.15
2 CITIC Securities 21.52
3 China CITIC Bank Corp 9.93
4 China Merchants Bank Co 9.38
5 Industrial and Commercial Bank of China (ICBC) 7.73

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1 13-Oct-17 Global Logistic Properties Singapore 1,000
2 19-Sep-17 Skyworth Digital Holdings China 2,000
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4 05-Sep-17 Joy City China 1,000
5 01-Sep-17 Rusal Russian Federation 500

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Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 31.63
2 BNP Paribas 16.57
3 HSBC 14.01
4 JP Morgan 13.39
5 Credit Agricole 11.30

Latest Offshore RMB Bonds

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1 15-Nov-17 Bank of China Paris Branch (BOC Paris) China 1,000
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