DBS expects offshore RMB bond issuance to reach nearly 350 billion yuan

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With renminbi-denominated products gaining more investor interest, DBS said it expects total offshore renminbi (RMB) bond issuance in the region to reach almost 350 billion yuan this year.

According to DBS, there have been 107 billion yuan worth of RMB bonds issued in the region so far in 2014, and this is already about 40 per cent of the total last year.

DBS said offshore RMB bond issuance will remain buoyant for a couple of factors.

Firstly, the domestic cash crunch in China means onshore funding liquidity is expected to remain tight.

Secondly, the Chinese central bank (People’s Bank of China) has said that it plans to expand the yuan’s trading band in an orderly manner this year to make the currency more convertible and to support a growing role in trade finance and forex trading.

However, DBS also said there are a couple of impediments that might hinder the further development of the offshore RMB bond market.

Clifford Lee, head of fixed income at DBS Bank, said: “One of the bigger impediments to the more rapid growth of the market is the use of the RMB. The application to utilise the RMB and the greatest pool of requirement still continues to be onshore in China.

“There are still strict guidelines which govern the repatriation of such offshore RMB onshore, and any continued relaxation there will be welcomed by the market.”

As for Singapore’s role in the offshore RMB bond market, experts said Singapore is in a good position to reach out to regions outside of Greater China, namely Southeast Asia, in order to pull in new issuers and investors and increase participation in the offshore RMB market.

 

 

 

Source : Channel News Asia | March 12, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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