China Issues Inaugural Renminbi Debt Sale in London as Demand Rises
- China issued its inaugural sale of offshore government debt in London’s RMB.
London’s nascent Renminbi market has made waves today after China issued its first sale of offshore government debt. London has been at the top of a very short list along with New York, Hong Kong, and Singapore looking to establish themselves as renminbi trading centers and beacons for the sale of government debt, a stance that was reflective of the high demand for the sale today after borrowing $457 million (RMB 3 billion).
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
In particular, the finance ministry bond managed to draw orders of RMB 8.5 billion from multiple investors that were evenly split across Asia and Europe, the Middle East and Africa (EMEA), per a recent HSBC report.
By extension, China’s ambitions to initiate its government’s debut in London, one of the premier financial centers in the world, was widely seen as a way to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term overseas demand for Chinese assets following the recent currency devaluation and market convulsions that afflicted Chinese equity markets last summer. Indeed, as recently as January, Chinese markets recorded the largest monthly drop in shares in the past seven years.
As such, these sales are instrumental in recouping confidence in the Chinese bond market that has taken a hit recently. Despite notching a two-year rally in bond and fixed income markets, the country has faced concern and headwinds given rapidly rising yields – the successful sale of these bonds in areas such as London will go a long way in calming the nerves of investors.
The latest bond sale will mature in 2019 and was sold with a fixed coupon of 3.28% - as a means of comparison, this is approximately 5 basis points above the yield of existing 2019 offshore Chinese bond trades, as investors were not demanding a large premium to buy the new debt.
China’s bid to attract additional investment from international players has been successful thus far with London, Frankfurt, Paris and Luxembourg all looking to compete for the distinction as a western hub for offshore renminbi trades. However, given the sale today in London, the first offshore issuance of sovereign paper by China, it appears London may be off to an early lead.
London’s nascent Renminbi market has made waves today after China issued its first sale of offshore government debt. London has been at the top of a very short list along with New York, Hong Kong, and Singapore looking to establish themselves as renminbi trading centers and beacons for the sale of government debt, a stance that was reflective of the high demand for the sale today after borrowing $457 million (RMB 3 billion).
The new world of Online Trading Online Trading Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone Read this Term, fintech and marketing – register now for the Finance Magnates Tel Aviv Conference, June 29th 2016.
In particular, the finance ministry bond managed to draw orders of RMB 8.5 billion from multiple investors that were evenly split across Asia and Europe, the Middle East and Africa (EMEA), per a recent HSBC report.
By extension, China’s ambitions to initiate its government’s debut in London, one of the premier financial centers in the world, was widely seen as a way to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term overseas demand for Chinese assets following the recent currency devaluation and market convulsions that afflicted Chinese equity markets last summer. Indeed, as recently as January, Chinese markets recorded the largest monthly drop in shares in the past seven years.
As such, these sales are instrumental in recouping confidence in the Chinese bond market that has taken a hit recently. Despite notching a two-year rally in bond and fixed income markets, the country has faced concern and headwinds given rapidly rising yields – the successful sale of these bonds in areas such as London will go a long way in calming the nerves of investors.
The latest bond sale will mature in 2019 and was sold with a fixed coupon of 3.28% - as a means of comparison, this is approximately 5 basis points above the yield of existing 2019 offshore Chinese bond trades, as investors were not demanding a large premium to buy the new debt.
China’s bid to attract additional investment from international players has been successful thus far with London, Frankfurt, Paris and Luxembourg all looking to compete for the distinction as a western hub for offshore renminbi trades. However, given the sale today in London, the first offshore issuance of sovereign paper by China, it appears London may be off to an early lead.