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RMB assets continue to show attraction to overseas
Published:6/24/2020 3:52:53 PMViews: 19
On June 23, the people's Bank of China successfully issued RMB 10 billion six-month central bank notes in Hong Kong, with a bid winning rate of 2.21%. Since November 2018, the people's Bank of China has gradually established a normal mechanism for issuing RMB central bank notes in Hong Kong. This issue is a rolling issue at maturity, and the balance of RMB central bank notes in Hong Kong is still RMB 80 billion after issuance. This is the fourth time in this year that the central bank has issued six issues in total, with a total of 70 billion yuan in the first five issues.
It is reported that the issue is widely welcomed by overseas investors, including banks, central banks, funds and other institutional investors in the United States, Europe, Asia and many other countries and regions, as well as international financial organizations, who actively participate in the subscription. The total amount of bids exceeds 34 billion yuan, which is 3.4 times of the issue volume, indicating that RMB assets have a strong attraction for overseas investors, which also reflects the global investors' optimism National economic confidence.
There is still great uncertainty in the global epidemic, and the economy is at risk of recession. In contrast, China has pressed the "fast forward" button in epidemic control and resumption of production, and the policy is more long-term and the overall situation is stable and controllable. At the same time, compared with the monetary policy of quantitative easing adopted by many major economies, China is more prudent and independent, and has been praised by the market, as well as attracting global investors to participate in the capital market. In terms of the issuance of central bank bills for four times this year, the bidding volume is 2.8 times, 3.5 times, 2.7 times and 3.4 times respectively, which directly reflects the offshore market's relatively optimistic sentiment towards China's economy and RMB.
Hong Kong is the most important offshore market of RMB. By the end of 2019, the size of RMB capital pool in Hong Kong has reached 658 billion yuan, and the daily average transaction volume of RMB real-time payment and settlement system has exceeded 1100 billion yuan. Hong Kong is also the largest offshore RMB payment center. As of March 2020, 75.3% of global RMB transactions were conducted through Hong Kong.
The people's Bank of China said that the stable and continuous issuance of RMB central bank bills in Hong Kong is conducive to enriching the high credit RMB investment product series and RMB liquidity management tools in the Hong Kong market, meeting the needs of investors in the offshore market, improving the offshore RMB yield curve, promoting the development of the offshore RMB currency market, and promoting the development of other issuers in the offshore market Bank RMB bonds to promote RMB internationalization.
"This has expanded Hong Kong's RMB financial products, given more choices to investors in the offshore RMB market, and is conducive to promoting the internationalization of the RMB." Li Jianjun, chief researcher of China business think tank, said in an interview with the financial times. At the same time, he also said that under the influence of the epidemic, all countries around the world adopt the unconventional monetary policy of quantitative easing, and the overall liquidity is abundant. In this case, to promote the development of RMB overseas central bills can further stabilize the RMB exchange rate and increase the market's recognition of it. "Since this year, the central bank has issued central bank bills in Hong Kong many times, which is an important measure to promote the opening of two-way financial markets. On this basis, the development of more RMB financial products will undoubtedly make the RMB more active and acceptable overseas. " He stressed.
RMB internationalization has been promoted for several years. Wen bin, chief researcher of China Minsheng Bank, told the financial times that the cross-border trade RMB settlement pilot started in 2009 is a big step in the process of RMB internationalization, which has been steadily promoted since then. At present, the driving force of RMB internationalization has been used in trade from the beginning, increasing the proportion of RMB internationalization under capital, that is to say, increasing the proportion of RMB internationalization in the field of financial investment. At present, RMB has ranked fifth in the international payment currency market and seventh in the international foreign exchange market. At the 12th Lujiazui forum held recently, pan Gongsheng, vice president of the people's Bank of China and director of the foreign exchange bureau, revealed that with the continuous enhancement of China's economic and financial strength, the position of RMB as an international payment, pricing, trading and reserve currency has been rising, the global demand for the allocation of RMB assets has increased rapidly, and the international radiation effect of financial centers has been increasing. At present, China's bond and stock market is the second largest in the world, over 160 trillion yuan, and has been included in many mainstream international indexes. The allocation of RMB assets by international institutions has reached 6.4 trillion yuan, with an average annual growth rate of more than 20%. In recent years, the holding of RMB bond assets by overseas investors has increased at an average annual growth rate of nearly 40%.