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The renminbi is the official currency of the People's Republic of China. It is the world's fifth most traded currency as of April 2022.
A government bond or sovereign bond is a form of bond issued by a government to support public spending. It generally includes a commitment to pay periodic interest,called coupon payments, and to repay the face value on the maturity date.
China Development Bank (CDB) is a policy bank of China under the State Council. Established in 1994,it has been described as the engine that powers the national government's economic development policies. It has raised funds for numerous large-scale infrastructure projects,including the Three Gorges Dam and the Shanghai Pudong International Airport.
A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations,mergers &acquisitions,or to expand business. It is a longer-term debt instrument indicating that a corporation has borrowed a certain amount of money and promises to repay it in the future under specific terms. Corporate debt instruments with maturity shorter than one year are referred to as commercial paper.
The Yuan is the base unit of a number of former and present-day currencies in Chinese.
The State Administration of Foreign Exchange (SAFE) of the People's Republic of China is an administrative agency under the State Council tasked with drafting rules and regulations governing foreign exchange market activities,and managing the state foreign-exchange reserves,which at the end of December 2016 stood at $3.01 trillion for the People's Bank of China. The current director is Zhu Hexin.
A Formosa bond is a bond issued in Taiwan but denominated in a currency other than the New Taiwan Dollar. They are issued by the Taiwan branches of publicly traded overseas financial institutions and to be traded must have a credit rating of BBB or higher.
A Kimchi bond is a non-won-denominated financial bond issued in the South Korean market. The name refers to kimchi,a Korean side dish. Woori Bank,which is credited with coining the term,defines it as solely referring to bonds from foreign issuers,a definition echoed by the Ministry of Finance and Economy. However,in practice,the term is also used to refer to non-won-denominated bond issuance by domestic entities. Deutsche Bank credits itself as having executed the first kimchi bond transaction,a US$100 million two-year floating rate note sold by South Korean company SK Global,but the first foreign company to sell non-won-denominated bonds in the South Korean market was Bear Stearns. Although foreign firms had long been permitted to issue won-denominated bonds,typically referred to as Arirang bonds,permission for them to issue foreign currency-denominated bonds was slower in coming. Permission was finally granted due to the strength of the won in 2005.
The Qualified Foreign Institutional Investor program,one of the first efforts to internationalize the RMB,represents China's effort to allow,on a selective basis,global institutional investors to invest in its RMB denominated capital market. Once licensed,foreign investors are permitted to buy RMB-denominated "A shares" in China's mainland Shanghai and Shenzhen stock exchanges. Thus foreign investors benefit from an opportunity to invest onshore,which is otherwise often insulated from the rest of the world,and subject to capital controls governing the movement of assets in-and-out of the country.
A samurai bond is a yen-denominated bond issued in Tokyo by non-Japanese companies,and is subject to Japanese regulations. These bonds provide the issuer with an access to Japanese capital,which can be used for local investments or for financing operations outside Japan. Foreign borrowers may want to issue in Samurai market to hedge against foreign currency exchange risk. Another intention may be simultaneously exchanging the issue into another currency,in order to take advantage of lower costs. Lower costs may result from investor preferences that differ across segmented markets or from temporary market conditions that differentially affect the swaps and bond markets.
The United States dollar was established as the world's foremost reserve currency by the Bretton Woods Agreement of 1944. It claimed this status from sterling after the devastation of two world wars and the massive spending of the United Kingdom's gold reserves. Despite all links to gold being severed in 1971,the dollar continues to be the world's foremost reserve currency. Furthermore,the Bretton Woods Agreement also set up the global post-war monetary system by setting up rules,institutions and procedures for conducting international trade and accessing the global capital markets using the US dollar.
Dim sum bonds are bonds issued outside of China but denominated in Chinese renminbi,rather than the local currency. They are named after dim sum,a popular style of cuisine in southern China. They are a type of eurobond.
The New Development Bank (NDB),formerly referred to as the BRICS Development Bank,is a multilateral development bank established by the BRICS states. According to the Agreement on the NDB,"the Bank shall support public or private projects through loans,guarantees,equity participation and other financial instruments." Moreover,the NDB "shall cooperate with international organizations and other financial entities,and provide technical assistance for projects to be supported by the Bank."
Since the late-2000s,the People's Republic of China (PRC) has sought to internationalize its official currency,the Renminbi (RMB). RMB internationalization accelerated in 2009 when China established the dim sum bond market and expanded Cross-Border Trade RMB Settlement Pilot Project,which helps establish pools of offshore RMB liquidity. The RMB was the 8th-most-traded currency in the world in 2013 and the 7th-most-traded in early 2014.
CDH Investments is a major Chinese alternative asset management firm based in Beijing,China. It specializes in private equity,venture capital and credit products. CDH invests across a range of sectors and regions. As of March 2015,CDH manages over RMB 100 billion of investor capital across its various investment platforms.
Masala bonds are bonds issued outside India but denominated in Indian rupees. Masala is a Hindi word meaning spices. The term was first used by the International Finance Corporation (IFC) to evoke the culture and cuisine of India.
Chinese-issued U.S. dollar bonds are dollar-denominated bond issued by Chinese financial institutions and corporations.
The corporate debt bubble is the large increase in corporate bonds,excluding that of financial institutions,following the financial crisis of 2007–08. Global corporate debt rose from 84% of gross world product in 2009 to 92% in 2019,or about $72 trillion. In the world's eight largest economies—the United States,China,Japan,the United Kingdom,France,Spain,Italy,and Germany—total corporate debt was about $51 trillion in 2019,compared to $34 trillion in 2009. Excluding debt held by financial institutions—which trade debt as mortgages,student loans,and other instruments—the debt owed by non-financial companies in early March 2020 was $13 trillion worldwide,of which about $9.6 trillion was in the U.S.
Digital renminbi,or Digital Currency Electronic Payment,is a central bank digital currency issued by China's central bank,the People's Bank of China. It is the first digital currency to be issued by a major economy,undergoing public testing as of April 2021. The digital RMB is legal tender and has equivalent value with other forms of renminbi,also known as the Chinese yuan (CNY),such as bills and coins.
References
- ↑ Zhang, Jinghong (2005-09-29). "熊猫债券发行 人民币区域化迈出重要一步 (Issuance of Panda bonds an important stride towards the regionalisation of the renminbi)". Xinhua News Agency. Archived from the original on February 9, 2006. Retrieved 2007-07-06.
- 1 2 Areddy, James T. (2005-10-11). "Chinese Markets Take New Step With Panda Bond". The Wall Street Journal. Retrieved 2007-07-06.
- ↑ "ADB, IFC mark inaugural Panda bond issue". People's Daily. 2005-10-19. Retrieved 2007-07-06.
- ↑ "'Panda' Bond Sellers Authorized to Send Money Home by China Government". Bloomberg. 2010-09-30. Retrieved 2011-09-29.
- ↑ "Poland to issue $455m panda bonds in China - Business - Chinadaily.com.cn". www.chinadaily.com.cn. Retrieved 2016-06-22.
- ↑ "Philippines plans to issue 1-bln-USD Samurai bond - Business - Xinhuanet.com". www.xinhuanet.com. Archived from the original on June 19, 2018. Retrieved 2018-06-19.
- ↑ "PH to pitch panda bonds, 'Build Build Build' in China" . Retrieved 2018-06-19.
