Latest RMB People & Markets news
Peugeot Citroën’s joint venture in China is coming back to the ABS market on August 22 after a year-long absence. The automaker will approach investors with only one tranche, trimming from the two tranches offered on its debut. But that will not impact the size — the originator plans to triple its fund-raising with a Rmb3bn ($449.8m) offer.
Short-dated CNY swaps have been lightly offered and the 2s/5s NDIRS curve slope has steepened slightly. Meanwhile, the People’s Bank of China is considering expanding its reverse repo operations and its Macro Prudential Assessment reporting requirements have been tweaked, writes Deirdre Yeung of Total Derivatives.
China Central Depository and Clearing (CCDC) published its biannual report on China’s asset backed securitization (ABS) market on August 8. It recommended regulators loosen up liquidity, provide incentives to attract more participants, and test the waters by opening an offshore ABS market. Here’s a quick guide to what CCDC said.
A raft of measures approved over the past two decades has opened the door to China’s onshore capital markets. But the Mainland still fares poorly against other countries in its pace of opening up, the International Monetary Fund (IMF) said in its latest China country report.
This week in renminbi: PBoC prioritises preventing systemic risk, China’s ODI falls, Trump readies probe of Chinese IP
The People’s Bank of China puts preventing systemic risk as a priority in its quarterly policy report, China’s non-financial outbound direct investment (ODI) falls in the first half, and US president Donald Trump wants to start an investigation into potential Chinese violation of US intellectual property policy.
Ford Automotive Finance (China) is gearing up for its second auto loan ABS transaction of the year in China, with bookbuilding slated for August 17. The carmaker is hoping to take home Rmb4bn ($600.2m) from the deal — a larger size than its last trade.
RMB round-up: China’s FX reserves up for six straight months, first FTSE Russell China ETF lists in Shanghai, StanChart’s RGI marks seven-month long decline
China’s FX reserves grow again in July, Harvest Fund Management lists the first ETF tracking FTSE Russell’s China index on the Shanghai Stock Exchange, and Standard Chartered’s Renminbi Globalisation Index (RGI) falls in June.
China’s new Financial Stability and Development Commission (FSDC), set up in July and integrated into the country’s central bank, reflects the authorities’ desire to change the regulatory set-up. But it is unlikely to lead to an outright merger of regulators.
BMW Automotive Finance (China) Co has tapped China’s auto loan asset-backed securities (ABS) market for the second time this year. The German carmaker bagged Rmb4bn ($595.4m) on August 8, less than a week after another foreign automaker, Nissan’s China joint venture, hit the market.
The Hong Kong Exchange (HKEX) will suspend its offering of China ministry of finance treasury bond futures after the end of the year, while no official trading data was disclosed for the Bond Connect scheme in the bourse’s 2017 interim results report.
One of the most promising vehicles for moving the financial system on to a greener path – risk management – is gathering momentum.
This week in renminbi: Ex-IMF economist calls for central bank independence, PBoC mulls RMB trading band change, China-Africa trade surges
In this round-up, an ex-IMF economist says China needs an independent central bank, the People’s Bank of China considers changing the RMB trading band, and trade between China and Africa surges in the first half of the year.
RMB round-up: Two state banks hire new chairmen, BOCHK AM receives first QFII quotas, China restricts SOE overseas investment
Bank of China and China Construction Bank have picked new chairmen, BOC’s asset management arm received its first batch of qualified foreign institutional investor (QFII) quotas, and the Ministry of Finance published new guidelines to restrict foreign investments by state-owned enterprises.
Chinese investors have become increasingly focused on short-dated bonds this year. That is proving to be a boon for the country’s auto ABS originators, who are in the middle of a breakneck expansion of volumes — with plenty more still on the cards. Noah Sin reports.
Investors poured cold water on China Gas’s first outing in the Panda bond market since last October, forcing the energy issuer to pull the longer-term tranche of its Rmb1.5bn ($221.4m) deal on Thursday.
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GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|2||China CITIC Bank Corp||12.38|
|3||Bank of China (BOC)||11.61|
|5||China Merchants Bank Co||10.06|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||02-Aug-17||China Gas Holdings||China||1,500|
|3||24-Jul-17||China Resources Land||China||5,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|2||Bank of China (BOC)||10.06|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||01-Jun-17||Ocean Wealth (Parent: China Orient Asset Management)||China||632|
|2||11-Apr-17||Bank of China Johannesburg Branch (BOC Johannesburg)||China||1,500|
|3||22-Feb-17||Ocean Wealth (Parent: China Orient Asset Management)||China||850|
|5||04-Nov-16||China Nuclear Engineering Group||China||1,500|