Singapore Stands Ahead Of RMB Business Or Welcomes Internal Enterprises To Issue Bonds.

< p > Shamugen Jakumar said that since the ICBC was authorized to make RMB settlement in Singapore in May last year, Singapore has become the largest offshore RMB settlement center outside China.

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< p > in fact, in the face of the high cost of borrowing in China and the cold issue of the property market, more and more Chinese enterprises are looking to Singapore, hoping to raise funds by issuing bonds locally.

According to Bloomberg data, in 2013, the sales volume of Singapore dollar bonds reached 19 billion 800 million Singapore dollars, an increase of two times more than that of ten years ago.

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< p > recently, the Singapore Monetary Authority issued a notice that it will start the overnight lending mechanism of 5 billion yuan from July this year, so as to ensure that it can meet the demand for short-term RMB lending in Singapore's local financial institutions.

It is noteworthy that this will further consolidate the foundation of Singapore's offshore RMB clearing market, and financial institutions will also get new funding channels to ensure timely settlement of RMB pactions, and encourage more enterprises to implement RMB trade financing through Singapore.

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< p > < strong > July started < a href= "http://www.91se91.com/news/index_cj.asp" > RMB < /a > overnight lending mechanism < /strong > /p >

< p > the Singapore monetary authority has issued a notice recently that it will start the overnight lending mechanism of 5 billion yuan from July this year, so as to ensure that it can meet the demand of "a href=" http://www.91se91.com/news/index_cj.asp "Singapore" /a "local financial institutions short-term lending.

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< p > the relevant person in charge of the Singapore Monetary Authority said that as Singapore's RMB a href= "http://www.91se91.com/news/index_cj.asp" > trading activities < /a > is increasing, the new RMB overnight lending mechanism will help alleviate the daily financial settlement needs of local financial institutions, thereby creating a more suitable environment for the development of RMB trading activities in Singapore.

The Singapore Monetary Authority (HKMA) says the details of the new mechanism will be published on the HKMA's website on the 1 next month.

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< p > public information shows that at present, the Singapore monetary authority has provided a set of RMB lending mechanism for local financial institutions according to the currency swap agreement between the two countries so that financial institutions can borrow renminbi funds in the form of loans in the form of loans in order to meet the needs of trade, direct investment and stabilizing the market.

The new mechanism to be started will complement the existing mechanism, which will further enhance market confidence and make it unnecessary for financial institutions to worry about short-term demand for Renminbi loans.

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< p > it is understood that the major local banks in Singapore welcome the establishment of the renminbi overnight lending mechanism by the HKMA. They believe that this will further consolidate the foundation of Singapore's offshore RMB clearing market, and financial institutions will also get new funding channels to ensure timely settlement of RMB pactions, and encourage more enterprises to implement RMB trade financing through Singapore.

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< p > analysts pointed out that the overnight lending mechanism will deepen the liquidity of the market and the liquidity management ability of Singapore's local banks, thereby strengthening the market's confidence in the RMB clearing system in Singapore.

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< p > < strong > mainland enterprises are ushering in the new bond tide < /strong > /p >

< p > according to the data of Zhongyuan Real estate, the cost of most of the enterprises such as US dollar preferred note has risen to more than 7%.

With the increasingly high borrowing costs in China, more and more Chinese enterprises are looking to Singapore, hoping to raise funds by issuing bonds locally.

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The sales volume of Singapore dollar bonds reached 19 billion 800 million Singapore dollars in 2013, which is two times more than that of 10 years ago, according to p Bloomberg data.

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< p > just last month, many mainland housing companies, including Jianye real estate and Longhu real estate, issued bonds in Singapore.

Among them, Jianye real estate in Zhengzhou, Henan, issued 200 million Singapore dollars (about 160 million U.S. dollars) of bonds, private banks bought 79% of them.

It is reported that Jianye real estate for 3 years of bonds to provide a 6.5% return rate, lower than its May 2013 issue of dollar denominated bonds.

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< p > Longhu real estate recently announced that the international sale of preferred notes has been approved in principle by the Singapore Exchange.

Longhu did not disclose the size and interest rate of the bills, but indicated that most of the net proceeds would be used for general corporate purposes and some of its existing debt refinancing, or that the proceeds would be redistributed due to changes in market conditions.

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Apart from housing prices, ICBC Singapore branch and ICBC Asia as joint account managers successfully arranged Hainan Airlines (600221 shares) in Singapore last month to issue 1 billion 700 million yuan 3 year term "Lion City bonds" (RMB denominated bonds) in addition to housing prices.

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< p > it is understood that since last year, the RMB clearing bank of Singapore has been providing services, the Singapore market has successfully issued 6 "Lion City bonds" worth 7 billion 500 million yuan, and the issuers are all banking financial institutions.

It is reported that the order amount of the bond reached 2.2 times the final subscription amount, showing the strong interest of international investors in RMB denominated bonds.

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