China is about to shake the global finance industry with its launch of the world’s first major sovereign e-currency. As it turns out, much of the research that went into development of the “digital Renminbi” has been taking place in the Greater Bay Area.Continue reading Shenzhen plays key role in ‘Digital RMB’
With a president whose finger is never far from the Tweet button, it’s best to be prepared. The People’s Bank of China said today it will sell RMB30 billion (US$4.3 billion) of short-term yuan-denominated securities in Hong Kong next week, signaling its plan to absorb offshore liquidity and cushion against further depreciation of its currency versus the US dollar, which shocked markets yesterday by breaking through the 7-to-1 level and resulting in the US labeling China a currency manipulator.
The People’s Bank of China has announced it will issue RMB bills in Hong Kong in “late June”. This is being done ostensibly to “improve the yield curve” of the bonds traded in Hong Kong, yet it would appear that the announcement is timed to send a warning to speculators in the offshore market by soaking up liquidity and burning short-sellers betting on a decline amid the US-China trade war.
Since November last year, the PBOC has successfully issued RMB bills three times in Hong Kong through the Central Moneymarkets Unit (CMU) platform of the Hong Kong Monetary Authority. The latest issuance was on May 15th, including three-month bills and one-year bills of RMB10 billion each.Read more in Chinese.