The week in renminbi: SZSE seeks BRI Panda bonds, officials tout freer RMB flow for Greater Bay Area, ICBC Moscow admitted as CFETS FX lending member

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The week in renminbi: SZSE seeks BRI Panda bonds, officials tout freer RMB flow for Greater Bay Area, ICBC Moscow admitted as CFETS FX lending member

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The Shenzhen Stock Exchange (SZSE) wants Panda bond issuers to raise RMB funding in Shenzhen for Belt and Road projects, the governments of Guangdong, Hong Kong and Macau plan new scheme to allow greater use of renminbi in the region, and the Moscow branch of Industrial and Commercial Bank of China (ICBC) becomes an interbank FX lending member.

Bonds:

  • The SZSE is seeking to attract Panda bond issuers involved in Belt and Road Initiative (BRI) projects to list their bonds on the exchange, Wang Jianjun, president and CEO of the bourse, told media on October 20.

    Hosting Panda bond issuance will be form part of the bourse’s effort to help support the financing of BRI, said Wang, which also includes SZSE’s Tech 2.0 Platform – a business service that matches potential investors with BRI projects.

  • Some Rmb10.2tr ($1.5tr) of bonds were issued in China’s interbank bond market in September, down 13% year-on-year, according to figures released by the People’s Bank of China on October 20. Issuance in the exchange market was Rmb440.8bn in the same period, down 2.9% year-on-year.

Hubs:

  • Officials in the Guangdong-Hong Kong-Macau Greater Bay Area are planning to launch a pilot scheme to allow the renminbi to be used more freely in the region, James Lau, Hong Kong’s secretary for financial services and the treasury, was quoted by an October 20 media report as saying.

    Lau added that the plan is still in its infant stages, and that the idea was first floated by Hu Chunhua, chief party secretary of Guangdong, in July.

    Separately, Lau said Hong Kong and the mainland will continue to expand mutual market access, and that Hong Kong could conduct payment and clearing services for onshore renminbi in the future.

Clearing banks:

MRFs:

  • Fund flows under the Mutual Recognition of Funds scheme accelerated in September, according to data released by the State Administration of Foreign Exchange. Mainland fund sales in Hong Kong saw overall net sales rose from Rmb273.5m to Rmb287.9m. Meanwhile, Hong Kong fund sales in China also went up, with net overall sales growing from Rmb10.7bn to Rmb12.2bn in the same month.

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