Global asset owners and managers are increasingly adopting offshore Renminbi for strategic hedging, with Hong Kong cementing its position as the crucial trading hub driving liquidity and currency stability.
RMB globalisation
Internationalisation of the renminbi is one of the key themes for China's, and broader Asia's, asset management industry.
The Chinese life insurance giant places more overseas assets into private equity compared to other asset classes, says its CIO.
How long will the renminbi stay on the weak side as the China-US rate paths diverge? Has the currency been undervalued? Fund managers have different views.
For a China looking to internationalise its currency, the Russian banking crisis could make it a force to reckon with; Family offices remain drawn to the city’s tax incentives, political and currency stability, clear regulatory framework and good schools for their children; Indonesia’s new wealth fund is talking to more than 100 investors; AIA set to boost exposure to Asian infrastructure 'as much as possible'; and more.
Nearly one third of central banks plan to increase their holdings of the Chinese currency over the upcoming 12-24 months, survey from a central banking think tank found.
Schroders aims to more than double its QFLP quota to help satisfy demand from Western institutional clients for access to domestic China growth and venture strategies.
The proposed scheme will fail to live up to the hype initially because the size of the opportunity needs to be put into perspective, says Shiv Taneja of Cerulli.
The HK subsidiary is set to list offshore renminbi ETFs in Hong Kong and New York and is in talks with global partners. It is also seeking to double its staff in Hong Kong to 40.
The SFC’s Alexa Lam and CSRC’s Xu Hao discuss the timing of the HK-China passport scheme, indicating the launch will follow the RQFII model and could be imminent.
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The first products must be quality and meet investor expectations, while clarity is needed on how long’s Hong Kong’s sole partner status will be exclusive, the Asian Financial Forum hears.
The firm's Asia ex-Japan head, Li Ting, plans to list an RQFII ETF in Hong Kong this year, and potentially also on other exchanges. This comes after it received an RQFII licence.
The risks posed by China's onshore bond market are clearer than ever as it becomes accessible to more investors, suggest speakers at a recent forum in Hong Kong.
