久久亚洲国产成人影院-久久亚洲国产的中文-久久亚洲国产高清-久久亚洲国产精品-亚洲图片偷拍自拍-亚洲图色视频

Global EditionASIA 中文雙語Fran?ais
Business
Home / Business / Finance

Diverse panda bond issuers reap benefits

By Chen Jia | China Daily | Updated: 2019-06-17 08:20
Share
Share - WeChat
A Chinese clerk counts RMB (renminbi) yuan banknotes at a branch of Bank of China in Nantong city, East China's Jiangsu province, July 23, 2018. [Photo/IC]

Home to the world's third-largest bond market worth more than 86 trillion yuan ($12.45 trillion), China has already attracted more than 1,200 overseas institutions to its onshore market so far.

Thanks to large trading volumes and a wide investor base, issuing renminbi-denominated bonds, or the panda bonds, in the onshore market has become more popular not only for sovereign issuers but foreign companies.

Semiconductor Manufacturing International Co, which is registered in Cayman Islands, is a case in point. It sold 500 million yuan panda bonds in the interbank market on April 29. China Chengxin International Credit Rating's AAA label suggested SMIC's panda bonds were regarded as of top quality.

According to the prospectus, the proceeds will be used to fund SMIC's Shanghai subsidiary and narrow the latter's 4.5 billion yuan financing gap.

As per local regulations, SMIC opened a non-resident account, or NRA, in Chinese banks for settlement. SMIC could borrow money from its cross-border RMB capital pool and transfer the fund to its Shanghai subsidiary.

As an increasing number of international companies start to do business in China, panda bonds have become an important tool to raise funds to support their domestic projects and operations.

Yuan-denominated bonds will help reduce currency rate risks, said Wang Tailei, a researcher at the National Association of Financial Market Institutional Investors.

Some of the world's Top 500 companies, such as Daimler AG, BMW and Air Liquidity, have issued panda bonds in China. "For international issuers, entering the Chinese bond market means they can tap a larger number of investors with diversified risk appetite," said Wang.

Besides, since 2016, the Chinese yuan has been part of the International Monetary Fund's basket of Special Drawing Rights, or SDRs, the supplementary foreign exchange reserve assets. So, global investors are more interested in holding yuan-denominated assets to hedge currency rate risks, said experts.

"Corporations are diversifying their investments by increasing RMB bonds, instead of focusing on investment in US dollar bonds," said Ivan Chung, head of China credit research and analysis at Moody's Investors Services.

The panda bond issuance cost is one of the key factors that global issuers consider before deciding the currency in which they issue their bonds. The RMB exchange rate against the US dollar, and China's interest rate level compared with the US Federal Reserve's policy rates, may influence the panda bond issuance levels, said Chung.

Global investors hope the Chinese financial regulators will remove certain policy restrictions, market insiders said.

On their wish list is permission for foreign investors to freely transfer positions among the existing cross-border investment mechanisms like qualified financial institutional investors, RMB-qualified foreign institutional investors, bond connects and China interbank bond market accounts.

This, they believe, will help improve the efficiency of fund deployment, said Guo Kai, deputy director-general of the International Department of the People's Bank of China.

"But a big gap remains in the depth and breadth of the bond market in China compared with that of major reserve-currency-issuing countries. China needs to further develop, open up, and improve the quality of the bond market not only to maintain financial stability as an emerging market but to meet the need for the yuan to become a major reserve currency," said Guo.

Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
CLOSE
 
主站蜘蛛池模板: 欧美另类性视频在线看 | 国产亚洲小视频 | 99久久精品自在自看国产 | 国产精品一级毛片不收费 | 日韩在线国产精品 | 九九精彩视频在线观看视频 | 在线男人的天堂 | 国产精品亚洲精品日韩已满 | 国产精在线 | 免费公开视频人人人人人人人 | 小屁孩cao大人免费网站 | 欧美国产高清 | 多人伦精品一区二区三区视频 | 黄色a毛片 | 欧美午夜a级精美理论片 | 中文字幕亚洲天堂 | 91亚洲自偷手机在线观看 | 手机看片久久高清国产日韩 | 国产精品yjizz视频网一二区 | 成人亚洲欧美 | 亚洲一区二区三区免费 | 97sese论坛 | 亚洲久久网 | 久久精品国产只有精品2020 | 92国产福利久久青青草原 | 欧洲成人在线视频 | 久久国产亚洲欧美日韩精品 | 国产日韩欧美精品一区二区三区 | 九九九热在线精品免费全部 | 久久精品观看 | 99国产精品免费观看视频 | 农村寡妇一级毛片免费播放 | 国产一区二区高清在线 | 免费a一毛片 | a毛片a毛片a视频 | 深爱五月开心网亚洲综合 | 成人亚洲欧美综合 | 精品国产一区二区三区久久影院 | 久久免费视频8 | 欧美一级日韩在线观看 | 一级毛片大全 |