Hong Kong considers new offshore yuan venture fund for tech, emerging industries
SCMP·- Hong Kong is actively considering launching a new offshore RMB venture capital fund to channel capital into cutting-edge technology and emerging industries while supporting RMB internationalization. - This initiative aligns with China's 15th Five-Year Plan, aiming to enhance Hong Kong's role as an international financial center and expand offshore RMB operations. - The Financial Secretary emphasized the need for accelerated efforts in innovation and technology, highlighting investments by the Hong Kong Investment Company, which manages over HKD 62 billion and has supported numerous projects across various sectors.CN MOF Debuts RMB Green Sovereign Bonds in HK; HSBC Says Move Helps Establish RMB Pricing Benchmark
AASTOCKS News·- China's Ministry of Finance issued RMB 6 billion in green sovereign bonds in Hong Kong, including RMB 3 billion in three-year bonds at 1.42% and RMB 3 billion in five-year bonds at 1.56%. - The net proceeds will fund eligible green expenditures, showcasing China's commitment to green finance and its economic growth potential, as noted by HSBC's David Liao. - This issuance aims to establish a pricing benchmark and strengthen the offshore RMB market, promoting international use of the currency in trade and financing.PBOC: New RMB Loans at RMB8.59T in 4M26, vs Forecast RMB8.9T
AASTOCKS News·- The People's Bank of China reported that in the first four months of this year, RMB loans increased by 8.59 trillion yuan. - By sector, household loans decreased by 490.2 billion yuan, while corporate loans increased by 8.99 trillion yuan. - As of the end of April, the balance of foreign currency loans was 551.5 billion USD, marking a 3.4% year-on-year growth, with an increase of 6.5 billion USD in the first four months.Brokers Raise RMB Forecasts; G Sachs Expects USD/CNY at 6.5 within 12 Mths
AASTOCKS News·- Several brokers have raised their forecasts for the RMB due to China's export competitiveness and stable trade relations with the US. - As of May 19, the RMB appreciated approximately 2.6% against the USD, prompting HSBC and Deutsche Bank to increase their year-end predictions to 6.65 and 6.55 per USD, respectively, citing strong exports and domestic demand recovery. - Goldman Sachs also anticipates continued appreciation, adjusting its forecasts for USD/CNY to 6.8, 6.7, and 6.5 over the next twelve months, supported by China's significant trade surplus.