Our most recent stories:
- Chinese investors’ appetite for short dated notes is proving a good fit for auto asset backed securities (ABS) originators. The market is in middle an eye-catching expansion, with Nissan’s China joint venture sealing its second deal of the year on August 3 and BMW prepares for its return on August 8.
- China Resources Land is planning its debut in the securitization market by the end of 2017, the company’s chief financial officer told GlobalRMB in an exclusive interview.
- The Philippines’ ministry of finance has mandated Bank of China and HSBC for its first Panda bond, GlobalRMB has learned. The sovereign issuer is
- Elsewhere in the Panda market, investors spoiled the party for China Gas as the
issuerwas forced to pull a five yearnote in its dual tranche deal on August 3.
- GlobalRMB revealed that Deutsche Bank lost its RMB solutions head in Hong Kong, while our sister publication GlobalCapital Asia reported that Goldman Sachs has hired a managing director
inits China investment banking services team.
People and markets:
- Two state-owned Chinese banks appointed new chairmen this week. Tian Guoli stepped down from Bank of China’s chairmanship to take up the equivalent role at China Construction Bank, where he worked before joining BOC, according to an August 3 Xinhua report. BOC replaced Tian with Chen Siqing, according to an August 2 statement by BOC. Chen previously served as BOC’s president.
- Bank of China Hong Kong Asset management received its first batch of QFII quotas in July, worth $500m, according to figures released by the State Administration of Foreign Exchange (Safe). The asset manager was the sole recipient of QFII quotas in July.
Meanwhile, only Rmb4.46bn ($664.4m) of renminbi QFII (RQFII) quotas were given out in July, Agricultural Bank of China International Asset Management was the sole recipient, which put the asset manager’s total amount of quotas at Rmb9.76bn.
- The former assistant
ofthe chairman of China Banking Regulatory Commission has been put under investigation for alleged corruption, according to the Central Commission for Discipline Inspection on August 1. The statement accused Yang of taking bribes and abusing his position to promote his son’s business. CBRC endorsed the decision to investigate Yang on the same day.
- China has published new guidelines to regulate SOEs’ overseas investment, according to the MoF on August 2. The new guidelines, which came into force on August 1, require SOEs to conduct feasibility studies before investing overseas, including through M&A, joint venture and equity participation.
An MoFspokesperson said the new guidelines will help tackle the problems of poor profitability and low returns on investment, as well as helping reduce SOEs’ financial risk.
- Qian Keming, vice minister of commerce, told Chinese media on August 1 that China and Mongolia have agreed to conduct a feasibility study for establishing a free trade zone. Qian noted that the agreement demonstrates that relations between the two countries are strengthening.
Belt and Road:
- Industrial and Commercial Bank of China (ICBC) has been picked as the coordinator for market development in Belt and Road countries by Hunan Construction Engineering Group Corporation (HNCEGC), according to an announcement by ICBC on August 1.
ICBC will help HNCEGC with resource coordination and financing in Belt and Road projects, according to the announcement, which also noted that HNCEGC will use its subsidiary, Zhongxiang Overseas Construction and Development, as its platform for resource allocation and asset-backed securitization globally.
- The Hong Kong Monetary Authority’s Infrastructure Financing Facilitation Office (IFFO) added 13 partners on August 2, including Crédit Agricole, Deloitte China, Ernst & Young, Japan Bank for International Cooperation, Legg Mason Global Asset Management, Malayan Banking Berhad and Morgan Stanley.
- The People’s Bank of China’s renminbi fix against the dollar was set at 6.7132 this morning, 79bp stronger from Thursday. In the spot market, the CNY was trading at 6.7195 as of 12.06pm, with the CNH at 6.7236, down 0.03% and up 0.09% from their previous close, respectively, according to Bloomberg data.
The dollar index was trading at 92.768 as of 11.49am, down 0.08% from the previous close, according to Bloomberg. The Thomson Reuters CNY reference index closed at 93.96 on Thursday, up 0.09% from its previous close.
The trade-weighted index by CFETS closed at 92.75 on July 31, which marked a monthly fall of 0.58%, with the BIS basket and special drawing rights basket closing the month at 93.61 and 93.75, down 0.68% and 0.46% in the same period, respectively, according to CFETS.