Despite the broad exodus from emerging market debt, offshore renminbi bonds have attracted flows and are expected to continue to benefit from renewed investor interest.
Tag : dim sum bond
Having won regulatory approval on Friday, the US asset manager will be the first to list a dim-sum bond ETF in Hong Kong.
The Taiwan Stock Exchange is preparing to introduce renminbi-denominated ETFs and stocks, indicating that Beijing will grant an RQFII quota to the island soon.
The firm is looking to pair offshore bonds with onshore securities with a view to giving Hong Kong pension savers access to the asset class, when regulations permit.
Boasting a broader array of issuers based on credit fundamentals not just FX appreciation, the $25 billion offshore RMB bond market is catching the eye of insurers, among others.
Early use of offshore RMB-denominated bonds and other local securities as collateral for cross-border repurchase agreements holds promise that Asia’s repo market will develop.
RQFII funds will give offshore yuan depositors better yields than their bank accounts and are a step towards convertibility of the currency, say panellists at our RMB Rising event.
