Chi on China Renminbi Gran Turismo (Part 3 of 3): The Rising Yuan in Seoul
|
|
- George McDowell
- 5 years ago
- Views:
Transcription
1 For professional investors 22 October Chi on China Renminbi Gran Turismo (Part 3 of 3): The Rising Yuan in Seoul SUMMARY After Beijing assigned two offshore renminbi (RMB) clearing banks in London and Frankfurt in July, it designated another clearing bank in Seoul. The latter will greatly expand the role of the RMB in bilateral trade and financial transactions in northeast Asia. South Korea has a natural advantage in accumulating RMB because it runs a trade surplus with China. Its involvement in the RMB markets should help broaden RMB internationalisation in northeast Asia as the momentum of China s collaboration with Japan has stalled. Developing financial infrastructure in South Korea will prepare it as an investment destination for Chinese firms. But if South Korea fails to fully exploit its advantages in the building of offshore RMB business, other offshore centres will benefit from the spill-over of Korea s offshore RMB liquidity. After marching to Europe with strong momentum (see part 2 of this series), the RMB has also set its feet in South Korea. The country has already amassed the fourth largest RMB pool in the offshore market (Chart 1). In July, Beijing assigned the Bank of Communications as an RMB clearing bank in South Korea and granted the country RMB80 billion in RQFII quota equal to that granted to France and the UK, and larger than Singapore s RMB50 billion. The usage of RMB for international payments has soared in South Korea, with total RMB payments in value terms rising by 563% year-on-year in June 2014 (Chart 2), according to SWIFT. In June 2014, 69% of all direct payments between China (including Hong Kong) and South Korea were made in RMB in June, up from 33% in June 2013.
2 RMB Gran Turismo (Part 3 of 3): The rising yuan in Seoul 22 October Chart 2: RMB (sent and received) payments value in South Korea source: SWIFT The clearing banks China has assigned allow it to control RMB liquidity overseas. So Beijing s move to designate clearing banks in offshore RMB centres before making its capital account fully convertible is a step towards fostering a new international monetary order with several global currencies by promoting the RMB (see part 2 of this series). Deepening RMB internationalisation The development of offshore RMB business in South Korea is crucial for deepening RMB internationalisation in northeast Asia because 1) China s collaboration with Japan to expand the RMB s role has stalled for political reasons, and 2) China runs a trade deficit with South Korea, which makes it conducive for South Korea to accumulate a large RMB pool for developing financial transactions in the currency. In December 2011, China and Japan entered into an agreement to promote the usage of RMB for trade and non-trade transactions. Under the agreement, China would allow Japan to 1) use RMB as an investment currency for its foreign direct investment into China, 2) develop a RMB/JPY foreign exchange market to
3 RMB Gran Turismo (Part 3 of 3): The rising yuan in Seoul 22 October facilitate trade settlements in RMB in Japan, and 3) encourage Japanese entities to issue RMB bonds in Tokyo. Japan would also invest in China s sovereign debt as an additional reserve asset. This Sino-Japanese deal could have boosted RMB internationalisation significantly because China runs a large trade deficit with Japan (averaging more than USD30 billion a year for the past five years). If more of this trade deficit were re-denominated in RMB, the resultant increase in the outflow of RMB to Japan would expand the role of RMB in northeast Asia and thus erode the dominance of the USD. However, the initiative failed to get off the ground due to the dispute over the ownership of the Daioyu/Senkaku Islands. Enter South Korea, with which China runs an even larger trade deficit than with Japan (Chart 3). If the Sino- Korean trade deficit were to be re-denominated in RMB, the potential RMB outflow to South Korea would exceed that under the Sino-Japanese collaboration. Among all the offshore RMB centres, China s trade deficit with South Korea is the second largest after Taiwan s (Chart 4). This gives South Korea the advantage of accumulating a large offshore RMB pool with which it can expand its RMB-denominated financial transactions to the point where Seoul would rival all other offshore centres except Hong Kong. (Hong Kong still enjoys unrivalled advantages in building the largest RMB pool as it has the largest amount of exports to China settled in RMB see part 2 of this series and enjoys preferential policy treatment from Beijing).
4 RMB Gran Turismo (Part 3 of 3): The rising yuan in Seoul 22 October Bilateral financial integration South Korea s large RMB pool will not only allow it to facilitate the use of RMB in bilateral trade, but also encourage the development of RMB financial transactions. Seoul s challenge is to expand and deepen its capital market to accommodate such new RMB financial business. The European offshore centres are very keen on developing RMB financial transactions, but they suffer from small RMB pools in local economies. However, if Seoul fails to fully exploit its natural RMB trade advantage, any other offshore centres that can offer better opportunities and returns could benefit from the resulting RMB outflows from Seoul as offshore RMB funds are highly fungible. From China s perspective, developing RMB financial infrastructure in South Korea should facilitate the currency s internationalisation through trade and the ability to hedge foreign exchange risks. It should also establish South Korea as an investment destination for Chinese capital as Beijing gradually opens its capital account. Chi Lo Senior Economist, BNPP IP
5 RMB Gran Turismo (Part 3 of 3): The rising yuan in Seoul 22 October DISCLAIMER This material has been prepared by BNP Paribas Asset Management S.A.S. ( BNPP AM )*, a member of BNP Paribas Investment Partners (BNPP IP)** and is made available in Australia by BNP Paribas Investment Partners (Australia) Limited ABN , AFSL , ( BNPP IP ). It is produced for general information only and does not constitute financial product advice. You should consider obtaining independent advice before making any investment decision in relation to any financial product referred to. The value of investments can go up and down. Past performance is not necessarily indicative of future performance. Any opinions included in this document constitute the judgment of the document s author at the time specified and are subject to change without notice. Given economic, market and other risks, there is no guarantee that any investment strategy referred to in this document will achieve its objectives. The contents of this document are based upon sources of information believed to be reliable, but no warranty or declaration, either explicit or implicit, is given as to their accuracy or completeness. BNPP IP to the extent permitted by law, disclaims all responsibility and liability for any omission, error, or inaccuracy in the information or any action taken in reliance on the information and also for any inaccuracy in the information contained in the document which has been provided by or sourced from third parties. *BNPP AM is an investment manager registered with the Autorité des marchés financiers in France under number 96-02, a simplified joint stock company with a capital of 64,931,168 euros with its registered office at 1, boulevard Haussmann Paris, France, RCS Paris ** BNP Paribas Investment Partners is the global brand name of the BNP Paribas group s asset management services.
Chi on China Renminbi Gran Turismo (Part 3 of 3): The Rising Yuan in Seoul
For professional investors 22 October 2014 1 Chi on China Renminbi Gran Turismo (Part 3 of 3): The Rising Yuan in Seoul SUMMARY After Beijing assigned two offshore renminbi (RMB) clearing banks in London
More informationChi on China Renminbi Gran Turismo (Part 1 of 3): The Next Step for Internationalisation
For professional investors 17 September 2014 1 Chi on China Renminbi Gran Turismo (Part 1 of 3): The Next Step for Internationalisation 0 SUMMARY Beijing s first step to internationalise the renminbi (RMB)
More informationRENMINBI INTERNATIONALISATION: THE NEXT STEP AND BEYOND
RENMINBI INTERNATIONALISATION: THE NEXT STEP AND BEYOND Presentation to the Budapest Renminbi Initiative Conference CHI LO, SENIOR ECONOMIST Budapest 5 April 2017 1 RENMINBI INTERNATIONALISATION 2 First
More informationChi on China RMB Undervaluation, Déjà vu
For professional investors 26 February 2014 1 Chi on China RMB Undervaluation, Déjà vu SUMMARY The fall in China s current account surplus in recent years has not resulted from a genuine change in the
More informationChi on China Up or Down? The Knowns and Unknowns of the RMB New Normal
For professional investors 28 January 2015 1 Chi on China Up or Down? The Knowns and Unknowns of the RMB New Normal SUMMARY The knowns: China s renminbi (RMB) has entered a new normal environment characterised
More informationFallacies Behind the RMB Predictions
For professional investors 9 December 2014 1 Chi on China Fallacies Behind the RMB Predictions SUMMARY The view that the USD105 billion drop in China s foreign exchange (FX) reserves in Q3 2014 reflected
More informationChi on China Playing Devil s Advocate with China s Property Market
For professional investors 31 July 2014 1 Chi on China Playing Devil s Advocate with China s Property Market SUMMARY We have argued recently 1 that a property market correction was the biggest policy challenge
More informationChina s Systemic Risk I: Shadow Banking
For professional investors 16 April 2014 1 Chi on China China s Systemic Risk I: Shadow Banking SUMMARY The size of China s shadow banking market may not be a problem, but the combination of its rampant
More informationChi on China. RMB Internationalisation (part 1 of 2): Short-term Tactics May Have Changed SUMMARY. For professional investors 23 February
For professional investors 23 February 2016 1 Chi on China RMB Internationalisation (part 1 of 2): Short-term Tactics May Have Changed Change will not come if we wait for some other person or some other
More informationChi on China Rising Chinese Bond Yields Reflect Policy Re-balancing
For professional investors 11 December 2013 1 Chi on China Rising Chinese Bond Yields Reflect Policy Re-balancing SUMMARY For too long, China s interest rates have been kept below its nominal GDP growth
More informationChina s Systemic Risk (II/II): Local Government Debt
For professional investors 14 May 2014 1 Chi on China China s Systemic Risk (II/II): Local Government Debt SUMMARY The problem with China s local government debt (LGD) is the combination of its rapid rate
More informationChi on China China s Debt Conundrum (II) The Local Government Debt Problem
For professional investors 26 October 2013 1 Chi on China China s Debt Conundrum (II) The Local Government Debt Problem SUMMARY China s local government debt (LGD) risk is rising, but it is not fatal.
More informationIS CHINA LOSING CONTROL OF ITS ECONOMY AND CURRENCY?
For professional investors 20 April 2016 1 CHI TIME IS CHINA LOSING CONTROL OF ITS ECONOMY AND CURRENCY? When you wake up every day, you have two choices. You can either be positive or negative; an optimist
More informationFOR PROFESSIONAL INVESTORS MAY FOR PROFESSIONAL INVESTORS
FOR PROFESSIONAL INVESTORS MAY 2011 1 FOR PROFESSIONAL INVESTORS FLAGSHIP FUND MERGERS PARVEST & BNP Paribas L1 May 2011 FOR PROFESSIONAL INVESTORS MAY 2011 2 Following the merger with Fortis Investments,
More informationWhat lies beneath China s renminbi shock?
For professional investors 9 September 2015 1 Chi on China What lies beneath China s renminbi shock? Get your facts first, then you can distort them as you please. Mark Twain SUMMARY Contrary to conventional
More informationFallacies Behind the RMB Predictions
For professional investors 9 December 2014 1 Chi on China Fallacies Behind the RMB Predictions SUMMARY The view that the USD105 billion drop in China s foreign exchange (FX) reserves in Q3 2014 reflected
More informationWILL THE RENMINBI SURPRISE THE MARKET AGAIN IN 2018?
Chi Time FOR PROFESSIONAL INVESTORS 24 January 2018 WILL THE RENMINBI SURPRISE THE MARKET AGAIN IN 2018? Opinion is the medium between knowledge and ignorance. The renminbi has started 2018 on a firm footing,
More informationInternationalization of the RMB: Developments, Problems and Policies
Internationalization of the RMB: Developments, Problems and Policies 23 October 2015 Zheng Liansheng Outline Introduction The development of RMB internationalization RMB Offshore markets The problems behind
More informationAsset Allocation Monthly
For professional investors Asset Allocation Monthly September 2015 Joost van Leenders, CFA Chief Economist, Multi Asset Solutions joost.vanleenders@bnpparibas.com +31 20 527 5126 Growth weakness in emerging
More informationChallenges to China s Consumption-led Growth
For professional investors 27 January 2016 1 Chi on China Challenges to China s Consumption-led Growth To improve is to change; to be perfect is to change often. Winston Churchill SUMMARY China has had
More informationHarmonisation of Fortis L Fund and Parvest For professional investors
Harmonisation of Fortis L Fund and Parvest For professional investors 1 HARMONISATION OF FORTIS L FUND AND PARVEST Following the merger of BNP Paribas Investment Partners and Fortis Investments on April
More informationChi on China Up or Down? The Knowns and Unknowns of the RMB New Normal
For professional investors 28 January 2015 1 Chi on China Up or Down? The Knowns and Unknowns of the RMB New Normal SUMMARY The knowns: China s renminbi (RMB) has entered a new normal environment characterised
More information2017 Renminbi Internationalisation Survey Report. Together we thrive
2017 Renminbi Internationalisation Survey Report Together we thrive 2 2017 Renminbi Internationalisation Survey Report HSBC is at the forefront of both offshore and onshore Renminbi (RMB) business: One
More informationMULTI-ASSET CLASS 1 EQUITIES: DEVELOPED COUNTRIES 1 EQUITY EMERGING COUNTRIES 2
10 2 3 6 8 9 13 14 MULTI-ASSET CLASS 1 EQUITIES: DEVELOPED COUNTRIES 1 EQUITY EMERGING COUNTRIES 2 Alpha Current Previous Alpha Current Previous Alpha Current Previous weight weight weight weight weight
More informationChi on China. RMB Internationalisation (part 1 of 2): Short-term Tactics May have Changed SUMMARY. For professional investors 24 February
For professional investors 24 February 2016 1 Chi on China RMB Internationalisation (part 1 of 2): Short-term Tactics May have Changed Change will not come if we wait for some other person or some other
More informationOffshore RMB Market Update
Offshore RMB Market Update Ricky Li Economics and Strategic Planning Department Bank of China (Hong Kong) Limited November 2014 Offshore RMB Market Update A. Offshore RMB Bond Market Update B. RMB Internationalization
More informationEngage. Commit. Achieve. Delivering investment success for our institutional clients. For Professional Investors
Engage. Commit. Achieve. Delivering investment success for our institutional clients For Professional Investors 1 - Engage. Commit. Achieve. Delivering investment success for our institutional clients
More informationTO HEDGE OR NOT TO HEDGE?
INVESTING IN FOREIGN BONDS: TO HEDGE OR NOT TO HEDGE? APRIL 2017 The asset manager for a changing world Investing in foreign bonds: To hedge or not to hedge? I April 2017 I 3 I SUMMARY Many European institutional
More informationIncreasing Competition among Markets for Offshore Renminbi Business
Increasing Competition among Markets for Offshore Renminbi Business Eiichi Sekine Chief Representative, Beijing Representative Office Nomura Institute of Capital Markets Research Masanobu Iwatani Financial
More informationIntroduction to SOUTH KOREA
Introduction to SOUTH KOREA South Korea has the fourth largest nominal GDP in Asia (USD 1.4 trillion in 2016). Economic growth slowed from 4.4% per year in 2002-2011 to (a still fairly good) 2.8% in 2012-2016
More information2013 The year of the renminbi
2013 The year of the renminbi Economic and regulatory conditions affecting the renminbi are unfolding quickly. This document reflects HSBC s views on how the development of the renminbi will unfold as
More informationThe Renminbi: Why + How = Now
Excerpt from Insights 2013 The Renminbi: Why + How = Now Sridhar Kanthadai, Regional Head of Transaction Banking, North Asia Michael Vrontamitis, Regional Head of Product Management, Transaction Banking,
More informationNotice to the Shareholders/Unitholders Rebranding of BNP Paribas Investment Partners
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF IN DOUBT, PLEASE SEEK PROFESSIONAL ADVICE. Luxembourg FCP UCITS class: BNP PARIBAS ISLAMIC FUND Luxembourg Trade and Company Register
More informationFTSE Emerging incl. China Overseas
FTSE Emerging incl. China Overseas non-r/qfii GDP Weighted Index Do you weight for the China A-shares inclusion? As the opening up of the Chinese equities market continues, international market participants
More informationImportant Changes to Fidelity Funds Fidelity Funds - China RMB Bond Fund and Fidelity Funds - China High Yield Fund Change of investment objectives
Fidelity Funds Société d Investissement à Capital Variable 2a rue Albert Borschette, L-1246 B.P. 2174, L-1021 Luxembourg Tél: +352 250 404 1 Fax: +352 26 38 39 38 R.C.S. Luxembourg B 34036 Important Changes
More information2014 AUSTRALIAN INVESTMENT MANAGERS CROSS-BORDER FLOWS REPORT. Financial Services Council and Perpetual
2014 AUSTRALIAN INVESTMENT MANAGERS CROSS-BORDER FLOWS REPORT Financial Services Council and Perpetual The Australian Investment Managers Cross-Border Flows Report was first commissioned in 2012 to determine
More informationCurrency Asymmetry, Global Imbalance, and the Needed Reform of Global Monetary System
Currency Asymmetry, Global Imbalance, and the Needed Reform of Global Monetary System FAN Gang National Economic Research Institute China Reform Foundation May 2006 1.China s trade balance In most of past
More informationAsset Allocation Monthly
For professional investors Asset Allocation Monthly December 2015 Joost van Leenders, CFA, Chief economist, Multi Asset Solutions joost.vanleenders@bnpparibas.com +31 20 527 5126 SUMMARY INVESTMENT CLIMATE
More informationChina may allow commercial banks to enter Futures Trading Market. Hong Kong plays a key role in facilitating One Belt One Road initiative
RMB Focus JUNE 2016 I. China further details CIBM access for offshore investors Cross-border RMB Bond Scheme is launched in Shanghai FTZ Pilot Offshore Financing Scheme expands nationwide II. More investment
More informationA-SHARES TANKED. WHAT S NEXT?
Chi Time FOR WHOLESALE INVESTORS 11 July 2018 A-SHARES TANKED. WHAT S NEXT? Panic causes tunnel vision. Calm acceptance of danger allows us to more easily assess the situation and see the options. Simon
More informationThe Development of the Offshore. Bonds. Peter J. Morgan, PhD Senior Consultant for Research Asian Development Bank Institute
The Development of the Offshore Market of the Yuan-Denominated Bonds Peter J. Morgan, PhD Senior Consultant for Research Asian Development Bank Institute ADBI-OECD Roundtable on Capital Market Reform in
More informationA Thought on Internationalizing the Won and the Yuan
A Thought on Internationalizing the Won and the Yuan Hyun, Suk The leaders of Korea and China recently agreed on concrete measures to facilitate the use of the Chinese yuan, including the establishment
More informationManaging the Balance Sheet under Solvency II Anton Wouters, Head of LDI & FM October 2011
Managing the Balance Sheet under Solvency II Anton Wouters, Head of LDI & FM October 2011 2 Agenda Solvency II in a nutshell BNPP IP Approach: Asset allocation optimization under Solvency 2 framework Managing
More informationThe Internationalisation of the Renminbi
Tel: (852)3550-7070; Fax: (852)2104-6938 Email: lawrence@lawrencejlau.hk; WebPages: www.igef.cuhk.edu.hk/ljl *All opinions expressed herein are the author s own and do not necessarily reflect the views
More informationCorporate Treasury & CFO Outlook. A report on the outlook of Australia s Corporate Treasurers and Chief Financial Officers
Corporate Treasury & CFO Outlook A report on the outlook of Australia s Corporate Treasurers and Chief Financial Officers Welcome to BNP Paribas Corporate Treasury & CFO Outlook This study reveals the
More informationRMB Internationalization Status and Its Implications
International Finance RMB Internationalization Status and Its Implications Hansoo Kim, Research Fellow* 1) China announced the RMB internationalization policy in 2009 and has carried forward many initiatives
More informationHong Kong: Will service exports shine again?
Jackit Wong Senior Economist jackitwswong@hangseng.com Thomas Shik Acting Chief Economist thomasshik@hangseng.com Hong Kong: Will service exports shine again? Since the end of the global financial crisis,
More informationUnderstanding RQFII The Great Door Opener for China Access
Markets and Securities Services Investor Services Understanding RQFII The Great Door Opener for China Access By: Stewart Aldcroft, Citi Investor Services Since China first started opening up its capital
More informationL Air Liquide Air Liquide Finance
Final Terms dated 9 January 2015 L Air Liquide Air Liquide Finance Euro 9,000,000,000 Euro Medium Term Note Programme for the issue of Notes Due from one month from the date of original issue SERIES NO:
More informationPROSPECTUS PARVEST NOVEMBER 2017
PROSPECTUS PARVEST NOVEMBER 2017 INFO FLASH #273 - FOR PROFESSIONAL INVESTORS The final draft of next Parvest Prospectus (the Prospectus ) is in the process of being approved by Luxembourg authorities
More informationThe Rise of China and the International Monetary System
The Rise of China and the International Monetary System Masahiro Kawai Asian Development Bank Institute Macro Economy Research Conference China and the Global Economy Hosted by the Nomura Foundation Tokyo,
More informationCESC Index Report for August
CESC Index Report for August China Exchanges Services Co Ltd (CESC) Highlights Trading under Shanghai Connect increased after approval was given for Shenzhen Connect. Northbound trading had a single-day
More informationReform of Global Reserve System and China s Choice 1
Reform of Global Reserve System and China s Choice 1 Liqing Zhang Professor and Dean, School of Finance, Central University of Finance and Economics, Beijing Email: zhlq@cufe.edu.cn 1. Why the Regime should
More informationMarket Bulletin. Chinese yuan: Walking on a tight rope. 16 August 2016 MARKET INSIGHTS. In brief
MARKET INSIGHTS Market Bulletin 16 August 2016 Chinese yuan: Walking on a tight rope In brief Recent trends suggest the Chinese authorities are allowing the Chinese yuan to depreciate against a basket
More informationRenminbi Internationalisation The Journey Begins
Treasury Division Renminbi Monitor January 2013 Joanne Yim Chief Economist joanneyim@hangseng.com Renminbi Internationalisation The Journey Begins After decades of rapid growth, mainland China has become
More informationTHE EXPORT-IMPORT BANK OF KOREA. Issue of CNY 1,250,000,000 Fixed Rate Notes due 2018 under the U.S.$25,000,000,000 Euro Medium Term Note Programme
Pricing Supplement THE EXPORT-IMPORT BANK OF KOREA Issue of CNY 1,250,000,000 Fixed Rate Notes due 2018 under the U.S.$25,000,000,000 Euro Medium Term Note Programme THE NOTES TO WHICH THIS PRICING SUPPLEMENT
More informationChart 2: Fixed Asset Investment (FAI) Year-over-year % change, 3MMA. Chart 1: China Real GDP Growth 12% QoQ Annualized 70% 10% Infrastructure 50%
Chart 1: China Real GDP Growth 12% 1 YoY QoQ Annualized 8% 6% 4% 2% 1Q11 1Q12 1Q13 1Q14 Source: NBS, FactSet J.P. Morgan Asset Management. Chart 2: Fixed Asset Investment (FAI) Year-over-year % change,
More informationChina s Systemic Risk (II/II): Local Government Debt
For professional investors 14 May 2014 1 Chi on China China s Systemic Risk (II/II): Local Government Debt SUMMARY The problem with China s local government debt (LGD) is the combination of its rapid rate
More informationBIS International Locational Banking Statistics and International Consolidated Banking Statistics in Japan (end-june 2018)
FOR RELEASE 8:5 A.M. September 14, 218 BIS International Locational Banking Statistics and International Consolidated Banking Statistics in Japan (end-june 218) I. BIS International Locational Banking
More informationNAVIGATING A MATURING BULL MARKET II
NAVIGATING A MATURING BULL MARKET II NAVIGATING A MATURING BULL MARKET 1 12 %YY 10 8 6 4 2 0-2 2011 2012 2013 2014 2015 2016 2017 Global AE EM NAVIGATING A MATURING BULL MARKET 2 NAVIGATING A MATURING
More informationMarket Performance WEEKLY MARKET ANALYSIS. Is USD Strength Weighing Down EM Asia Stocks? Could Rising Italian Pressures Spillover to Europe?
1 OCTOBER 2018 Is USD Strength Weighing Down EM Asia Stocks? Since mid-april, the USD gained nearly 20% against emerging market (EM) Asia currencies and up 10% gains against G10 currencies. USD strength
More informationMarket Bulletin. Chinese yuan: Walking on a tight rope. August 16, In brief
Market Bulletin August 16, 2016 Chinese yuan: Walking on a tight rope In brief Recent trends suggest the Chinese authorities are allowing the Chinese yuan to depreciate against a basket of currencies in
More informationUPDATE ON THE ASIAN ECONOMY 12/2014. N o 4. Exploring new opportunities as China liberalises its economy.
UPDATE ON THE ASIAN ECONOMY 12/2014 N o 4 Exploring new opportunities as China liberalises its economy. Issue 04 December 2014 1 Bala Swaminathan, General Manager, Westpac International Welcome The Year
More informationSecond wind for offshore RMB market
Citi OpenInvestor September 2012 7 Globalization Citi OpenInvestor presents: Second wind for offshore RMB market In just one year, the internationalization of the renminbi has seen a thriving market in
More informationUBS Asset Management Professional clients only. Petroyuan. The shape of things to come. Hayden Briscoe, Head of Fixed Income, Asia Pacific
UBS Asset Management Professional clients only Petroyuan The shape of things to come Hayden Briscoe, Head of Fixed Income, Asia Pacific 1 RMB-denominated oil contracts will begin trading for the first
More informationFor professional investors - OCTOBER 2012 MAKING THINGS SIMPLER FOR OUR CLIENTS
For professional investors - OCTOBER 2012 MAKING THINGS SIMPLER FOR OUR CLIENTS 2 - LUXEMBOURG FUND OFFER - October 2012 MAKING THINGS SIMPLER AND IMPROVING OUR SERVICES In an ever-changing, increasingly
More informationRenminbi Qualified Foreign Institutional Investor Scheme Scaled Up
Renminbi Qualified Foreign Institutional Investor Scheme Scaled Up 1 Briefing note 22 March 2013 Renminbi Qualified Foreign Institutional Investor Scheme Scaled Up The Renminbi Qualified Foreign Institutional
More informationRMB internationalization:
RMB internationalization: Recent Development and headwinds Alicia Garcia-Herrero Chief Economist for Emerging Markets, BBVA Key points 1 Why is China pushing to internationalize the RMB? 2 Recent development
More informationRMB Internationalization Policies & Trade Finance Services. Xi Jingjing April 2017
RMB Internationalization Policies & Trade Finance Services Xi Jingjing April 2017 Contents China-Hungary Relationship Status quo and Future of RMB Internationalization BOC s Financial Services 2 China-Hungary
More informationDEMOGRAPHICS, REAL INTEREST RATES AND EQUITY MARKETS WHITE PAPER
DEMOGRAPHICS, REAL INTEREST RATES AND EQUITY MARKETS WHITE PAPER 1 Demographics, Real Interest Rates And Equity Markets By Morten Springborg, Global Thematic Specialist, C WorldWide Asset Management. Key
More informationInvestment Opportunities: RMB Bonds
Titre de la presentation Europlace Shanghai 2010 Investment Opportunities: RMB Bonds Asian Local Currency Markets in Context Note: Local currency does not include government issuance Source: Dealogic,
More informationLocal currency emerging market debt: deserving of a closer look
Local currency emerging market debt: deserving of a closer look FOR PROFESSIONAL INVESTORS - April 2018 L. Bryan Carter Head of Emerging Market Fixed Income bryan.carter@bnpparibas.com Jean-Charles Sambor
More informationFTSE China Indexes. Overview. Product highlights
FTSE China Overview s China equity indexes cover every available China share classes, including A s, B s, H s, Red s, P s, S s and N s, categorised by size, sectors and particular themes. Composite indexes
More informationJune Vanguard Equity Index Fund Benchmark Changes Overview of the Transition Process
June 2015 Vanguard Equity Index Fund Benchmark Changes Overview of the Transition Process Table of Contents 1. Introduction 3 2. How are the existing and destination indexes different? 3 3. How will the
More informationSummary. The RMB continues to depreciate against the dollar. While there are a number of factors
Summary Editor: Tristan Zhuo Senior Economist Phone: +852 2826 6193 Email: tristanzhuo@bochk.com The protectionist rhetoric of U.S. President-elect Trump during his campaign has prompted fears of escalation
More informationOffshore CNY Guidelines
Offshore CNY Guidelines Offshore CNY Background Industry stakeholders have approached SWIFT on challenges surrounding offshore Chinese Yuan operations, in particular concerns regarding straight-through-processing
More informationThe Internationalization of the RMB: A Treasury Perspective
ctc guide to The Internationalization of the RMB: A Treasury Perspective Executive Summary Underwritten by: CTC GUIDE: The Internationalization of the RMB: A Treasury Perspective Executive Summary The
More informationMarket Bulletin. China: Still sneezing hard. January 20, 2016 MARKET INSIGHTS. In brief
MARKET INSIGHTS Market Bulletin January 20, 2016 China: Still sneezing hard In brief Slower 4Q15 GDP growth and soft December data add to concerns about China s economic health. On a more encouraging note,
More informationLess Savings to Fund US Tax Cuts
31 JULY 2017 Less Savings to Fund US Tax Cuts By Florence Tan, Celestee Tan Failure to pass the healthcare bill and exclusion of the Border Tax Adjustment in the proposed tax reform imply that there is
More informationThe Internationalisation of the Renminbi
Tel: (852)3550-7070; Fax: (852)2104-6938 Email: lawrence@lawrencejlau.hk; WebPages: www.igef.cuhk.edu.hk/ljl *All opinions expressed herein are the author s own and do not necessarily reflect the views
More informationEconomic Watch. As RMB internationalization advances, new headwinds call for policy steps. China
China Hong Kong, July 17, 212 Economic Analysis Asia Chief Economist of Emerging Markets Alicia Garcia Herrero alicia.garcia-herrero@bbva.com.hk Chief Economist for Asia Stephen Schwartz Stephen.schwartz@bbva.com.hk
More informationChina Equities CHINA S ALPHABET SOUP MAKING SENSE OF MSCI S A-SHARE ANNOUNCEMENT
PRICE POINT August 2017 Timely intelligence and analysis for our clients. Equities CHINA S ALPHABET SOUP MAKING SENSE OF MSCI S A-SHARE ANNOUNCEMENT KEY POINTS Index provider MSCI recently announced that,
More informationKGRI Working Papers. Prospects for a Multicurrency Clearing System in Asia. No.6. Junichi Shukuwa 1 and Masaya Sakuragawa 2
KGRI Working Papers No.6 Prospects for a Multicurrency Clearing System in Asia Version1.0 March 2017 Junichi Shukuwa 1 and Masaya Sakuragawa 2 Keio University Global Research Institute Copyright 2017 Junichi
More informationIntroduction to PHILIPPINES
Introduction to PHILIPPINES With a population of about 100 million people, the Philippines, which comprises more than 7,000 islands, is the 12th most populous country in the world. An additional 12 million
More informationHong Kong & Mainland China News October-2014
Hong Kong & Mainland China News October-2014 HK-Chile trade pact to take effect Friday, October 03, 2014 A Free Trade Agreement between Hong Kong and Chile will come into effect on October 9, the Trade
More informationFORTIS L FUND (the Company )
Third Supplementary Prospectus dated 5 April 2010 to the Singapore Prospectus registered on 20 November 2009 FORTIS L FUND (the Company ) THIRD SUPPLEMENTARY PROSPECTUS LODGED PURSUANT TO SECTION 298 OF
More informationTaking Advantage of ICBC Clearing Bank s Strength to Advance the Development of Trade & Commerce between Singapore and Shaanxi. April 2015 Singapore
Taking Advantage of ICBC Clearing Bank s Strength to Advance the Development of Trade & Commerce between Singapore and Shaanxi April 2015 Singapore I II III Introduction of ICBC and ICBC Singapore Branch
More informationFund Management Activities Survey July 2017
Fund Management Activities Survey 2016 July 2017 1 Table of Contents I. Summary of Major Findings of FMAS 2016 1 II. Survey Report 3 Introduction 3 Responses 4 Executive Summary 5 Survey Findings 7 Combined
More informationMARKET REVIEW 12 April 2011
1 Introducing the CNH Bond Market The CNH bond market refers to the offshore Renminbi bond market in Hong Kong. Also known as the dim sum bond market, this nascent but rapidly developing market has caught
More informationThe Asian Wealth Management Summit 2015
For Professional Investors - November 4 th 215 The Asian Wealth Management Summit 215 Keynote Address Ligia Torres - BNP Paribas Investment Partners - Head of APAC & Emerging Markets 2 How to define the
More informationCORPORATE BORROWERS INTENTIONS 2015 PAGE 1 CORPORATE BORROWERS INTENTIONS 2015
CORPORATE BORROWERS INTENTIONS 2015 PAGE 1 CORPORATE BORROWERS INTENTIONS 2015 A REPORT ON THE BORROWING INTENTIONS OF AUSTRALIAN CORPORATES FOR 2015 PAGE 2 CORPORATE BORROWERS INTENTIONS 2015 Welcome
More informationAsian Insurance Investment Survey 2017
This communication is for Institutional Investors, Professional Investors and Accredited Investors only and should not be distributed to or relied upon by retail clients. It is only intended for use in
More information2017 APEC CEO Survey Key Findings
A world in transition: PwC s 2017 APEC CEO Survey 2017 APEC CEO Survey Key Findings www.pwc.com/apec Key themes Making of the workforce of the future An operating model for a fluid trade policy environment
More informationImportant Changes to Fidelity Funds. Changes to the Investment Objectives for certain funds of Fidelity Funds
FIDELITY FUNDS Société d Investissement à Capital Variable 2a, Rue Albert Borschette BP 2174 L - 1021 Luxembourg RCS B34036 Tel : +352 250 404 (1) Fax : +352 26 38 39 38 Important Changes to Fidelity Funds
More informationLetter from Hong Kong
Letter from Hong Kong April 2015 The Hong Kong Capital Markets Welcome to our new publication. Our intention is to send out a high scope commentary, twice a year, focussing on a particular feature of the
More informationUnravel the complexities of RMB Internationalisation The Rising Role of RMB- A Corporate Perspective 24 May 2012 PUBLIC
Unravel the complexities of RMB Internationalisation The Rising Role of RMB- A Corporate Perspective 24 May 2012 1. RMB Internationalisation Overview A Global Trade Currency A Global Investment Currency
More informationUS Rates Outlook: The Fed s Third Mandate
US Rates Outlook: The Fed s Third Mandate April 2016 Gennadiy Goldberg US Rates Strategist gennadiy.goldberg@tdsecurities.com 1 (212) 827-7180 Lopsided employment picture rapidly improving 2 Wage inflation:
More informationEighteenth Annual General Meeting
Singapore Exchange Eighteenth Annual General Meeting 21 September 2017 Singapore Exchange Eighteenth Annual General Meeting Kwa Chong Seng Chairman 2 CEO Address Loh Boon Chye 3 Key Business and Operational
More informationInvesco Global Insights
Invesco Global Insights July 2016 The Opening of China s Bond Markets: Opportunities for Global Investors (Executive Summary) 1 Introduction China has the second largest economy and the third largest bond
More informationIntroduction to Foreign Exchange Slides for International Finance (KOM Chapter 14)
Slides for International Finance (KOM Chapter 14) American University 2011-09-01 Preview Introduction to Exchange Rates Basics exchange rate concepts Exchange rates and the cost of foreign goods The foreign
More information