London Stock Exchange today saw the second RMB denominated government bond of a non-Chinese issuer admitted to trading on its markets. The Hungarian Government mandated the Bank of China to arrange an RMB denominated three year sovereign bond of RMB 1 billion as part of a wider initiative to boost links and commerce between Hungary and China.
London Stock Exchange has a strong track record of supporting RMB issuance on its markets. There are 65 so-called dim sum bonds on London Stock Exchange, with an aggregate value of RMB 28 billion / GBP 2.9 billion. In 2016 alone, 30 new RMB bonds have been admitted to trading in London, raising close to RMB 6 billion / GBP 640 million.
Nikhil Rathi Chief Executive Officer, London Stock Exchange stated: “London is the world’s most international financial market and home to the largest number and most diversified issuer base for RMB bonds in the world. Today’s listing, Hungary’s first RMB denominated bond and a first for Continental Europe, is a clear demonstration of London Stock Exchange’s position as a leading centre for RMB debt issuance.”
Britain became the first non-Chinese issuer of sovereign RMB debt back in 2014. Moreover, an FT article back in December 2015 noted Russia is looking to issue RMB bonds as soon as this year. In the FT article they quoted Jon Vollemaere, chief executive of R5FX, a currency trading company specialising in emerging markets who stated: “In London the renminbi is seen as an opportunity but in New York it is seen as a threat. The best thing to happen recently for the Chinese money market is Washington deciding not to do business with Russia for a while.”
For the full list of 2016 RMB Bond Issuances in London click here.