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RMB round-up: PBoC to reform bond markets, FX reserves up for twelfth straight month, Cambodia considers RMB for China trade


The People’s Bank of China eyes bond market reforms, China’s FX reserves stand at $3.16tr after another month of growth, and Cambodia moves closer to replacing the dollar with the renminbi for trades with China.

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  • The Chinese central bank said at the conclusion of its work conference on February 6 that it will standardise regulations and rules for market access in the corporate bond market, improve the mechanism for dealing with bond defaults, increase the extent to which markets determine the RMB exchange rate, and continue to promote RMB internationalisation.
    The PBoC will also continue its neutral monetary policy and ensure a steady level of liquidity in the banking system in 2018. 
  • China will continue to open up its bond and equity markets in 2018, Pan Gongsheng, head of the State Administration of Foreign Exchange (Safe), wrote in a February 8 article published by Financial News, the PBoC’s newspaper. The country will improve Bond Connect and continue its study of launching a London-Shanghai Connect link the UK and China’s equity markets.
  • China will also reform its foreign exchange management for investors using the qualified foreign institutional investor (QFII), RMQ QFII, qualified domestic institutional investor (QDII) and RMB QDII access programmes, Pan added. It will also build a healthy, open and competitive FX market, by expanding the base of market participants and enriching the variety of financial instruments.



  • Cambodia may use the renminbi or the Cambodian riel instead of the dollar to settle trades with China, officials at the country’s Commerce Ministry were reported as saying by a February 6 media report.
    During his visit to Guangdong province last week, Pan Sorasak, the Cambodian minister of commerce, said there is a need to replace the dollar for bilateral trades with China. The idea was first raised by Ouyang Weimin, vice governor of Guangdong, on the Cambodian official’s visit to the province, according to the media report.
    “The Chinese side raised that, from their experiences, when they did trade with other countries using the dollar, exchanging back and forth, they lost a lot of money,” said Seang Thay, a spokesman at the Commerce Ministry. “So now, they want to use the RMB directly.”
    The Cambodian central bank urged local businesses to use the renminbi to settle trades with China last October. The country won direct access to China’s onshore FX market in January.


GlobalRMB Panda Bonds league table

Rank Arranger Share % by Volume
1 Industrial and Commercial Bank of China (ICBC) 28.57
2 China Merchants Securities Co 24.29
3 CITIC Securities 21.43
4 HSBC 7.14
4 Standard Chartered Bank 7.14

Panda Bond Database

Pricing Date Issuer Country Size Rmb (m)
1 06-Feb-18 Global Logistic Properties via Iowa China Offshore Holdings Hong Kong 1,200
2 05-Feb-18 China Merchants Port Holdings (CMP) Hong Kong 500
3 01-Feb-18 The Emirate of Sharjah United Arab Emirates 2,000
4 25-Jan-18 Sino-Ocean Group Holdings Hong Kong 3,000
5 18-Jan-18 Shenzhen International Holdings China 300

Offshore RMB Bond Top Bookrunners

Rank Bookrunner Share % by Volume
1 Standard Chartered Bank 68.23
2 CLSA 9.75
2 Mitsubishi UFJ Financial Group (MUFG) 9.75
4 Credit Agricole 2.92
5 CTBC Bank (formerly Chinatrust Commercial Bank) 1.87

Latest Offshore RMB Bonds

Pricing Date Issuer Country Size Rmb (m)
1 08-Feb-18 Sinochem Offshore Capital Company China 1,000
2 30-Jan-18 Rabobank The Netherlands 500
3 17-Jan-18 Asian Development Bank (ADB) Philippines 100
4 17-Jan-18 IL&FS Transportation Networks India 100
5 10-Jan-18 IL&FS Transportation Networks India 900