Our most recent stories:
Investment:
Foreign ownership of Chinese stocks stood at Rmb1.17tr ($185.2bn) last December, up from Rmb700.2bn in January 2017, according to data published by the People’s Bank of China this week.
International investors also held more Chinese bonds last year, up from Rmb822.1bn in January to Rmb1.2tr by the end of the year, the central bank’s figures show.
Hubs:
HKEX’s USDCNH futures recorded their second highest volume at 12,428 contracts on Thursday, according to the bourse . The figures include trading from the day session on January 25 and the after-hours session on the previous day. The product also recorded its fourth highest turnover on January 24, with a volume of 9,098 contracts.
Green:
Luxembourg Stock Exchange is partnering with ADBC to promote the ownership of the Chinese policy bank’s green, poverty alleviation and sustainability bonds by international investors. The two parties signed a memorandum of understanding to pursue this goal on Tuesday.
ADBC’s eligible green bonds will be displayed on the Luxembourg Green Exchange, a platform dedicated to green, social and sustainable products. International investors will have access to key information about the bonds, such as the use of proceeds, in English, including ADBC's bonds traded through Bond Connect.
The effort will help bridge the Chinese and international green bond market, Yin Jiuyong, vice president at ADBC, said in a January 23 press release.
“This is the first time information related to ADBC’s domestic green bonds will be displayed on an international stock exchange,” said Yin. “It will facilitate connectivity between China and international investors.”
Belt and Road:
Hongshi Holding Group became the first domestic construction company to sell a publically syndicated Belt and Road bond on January 19, said the Shanghai Stock Exchange. The issuer sold a Rmb300m three year bond at 6.34%, which was oversubscribed by 2.67 times.
The company will use the proceeds to purchase equipment for a cement project in Laos, which is expected to help the country meet its demand for cement in infrastructure projects. The bond was underwritten by Guotai Junan Securities.
Agricultural Bank of China has been given preliminary approval to set up a branch in Hanoi, the bank said in a January 24 statement.
The new branch will provide financial support for bilateral projects between China and Vietnam in agriculture, infrastructure, trade, and help increase cross-border economic activities and production capacity. It will also promote the Belt and Road Initiative and co-operation between China and ASEAN.