RMB Internationalization Update · RMB Internationalization Update Caroline Owen Regional Head of...
Transcript of RMB Internationalization Update · RMB Internationalization Update Caroline Owen Regional Head of...
RMB Internationalization Update
Caroline Owen
Regional Head of RMB Solutions, Americas
Standard Chartered Bank
October 2013
RMB Internationalization Overview
The Standard Chartered
Renminbi Globalisation Index
RMB Trade Settlement
CNH Bond Proceeds
CNH IPO Proceeds
CNH Loan Proceeds
R-QFII
RMB Inflows
RMB Trade Settlement
RMB Dividends
Swap agreements with
central banks
RMB Outflows
RMB Cross-Border Lending
Cross-Border RMB Flow
Regulatory Reforms
CNH Deposits
The Standard Chartered
Renminbi Globalisation Index (RGI)
0
200
400
600
800
1,000
1,200
1,400
Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13
Index as of August 2013 = 1,148
HK + SG + LDNHK
HK
+ S
G +
LD
N +
TW
Support from Central Banks RMB bilateral currency swap agreements with 24 central banks totaling over CNY 2.5 trillion
Regulatory Developments
Cross-Border RMB Transaction
Simplification for Corporates
RMB Cross-Border Trade Settlement
RMB Cross-Border Lending
RMB Guarantees
CNH Bond Proceeds
0.31%0.29% 0.29%
0.25%
0.33%0.35%
0.34%
0.40%0.43%
0.45%
0.53%0.51%
0.42%
0.56% 0.57%
0.63%
0.59%
0.74%
0.69%
0.84%
0.87%0.87%0.84%
17 17 17
20
1716 16 16 16
1514 14
16
14 1413
1413 13 13
11 1112
0
5
10
15
20
0.0%
0.1%
0.2%
0.3%
0.4%
0.5%
0.6%
0.7%
0.8%
0.9%
1.0%
Wo
rld
Paym
en
ts C
urr
en
cy R
an
kin
g
RM
B a
s %
of W
orl
d P
aym
en
t C
urr
en
cie
s
RMB Payment Growth
Source: SWIFT RMB Tracker September 2013.
RMB as a % of World Payment Currencies October 2011 through August 2013
RMB Cross-Border Lending
Onshore corporates can lend excess RMB to overseas borrowers
through onshore banks without having to seek PBOC approval.
Offshore RMB
Account
(Offshore Borrower)
RMB
Pool Header or
Single Account
RMB Special
Account
RMB
Cross-Border
Loan
RMB Loan
Payments
RMB Cross-Border Lending
Chinese Corporate Lender Offshore Borrower
Offshore RMB Benchmark Interest Rate
1.091.26
1.47
2.072.25
2.47
2.782.96
0.5
1.0
1.5
2.0
2.5
3.0
3.5
O/N 1W 2W 1M 2M 3M 6M 1Y
Fix
ing
Ra
te (%
)
Tenor
Source: TMA as of 25-Oct-13.
CNH HIBOR Curve
Growing Liquidity in Offshore Hubs
709
14099
5
0
100
200
300
400
500
600
700
800
HK
(Aug-13)
Singapore
(Jul-13)
Taiwan
(Sept-13)
London
(Dec-12)
CN
H D
ep
osit
Vo
lum
es (B
n)
CNH Deposit Base in Offshore Hubs
RMB Appreciation Continues
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
6.00
6.05
6.10
6.15
6.20
6.25
6.30
6.35
6.40
6.45
% P
rem
ium
Bid
Rate
s
USD-CNY (Onshore RMB) USD-CNH (Offshore RMB)
CNH premium over CNY (%)
Historic Spot Rates (CNY, CNH)
Source: Bloomberg as at 25-Oct-13.
CNH Bond Market Update
10 12 1641
189
271282
0
50
100
150
200
250
300
2007 2008 2009 2010 2011 2012 2013
CDs/Money Market
Bonds
(CNH Bn)
CNH New Issue Volumes
Source: Standard Chartered as of 25-Oct-13
Shanghai Free Trade Zone
• FDI Regulation
• Tariffs
• Services
• Financial Services
• RMB
Convertibility
Source: The Economist