Chinese currency grabs spotlight on ASX

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Chinese Renminbi (RMB) has staked its claim as an emerging global currency, following a landmark RMB transaction on the ASX that involved advice from prominent law firms.
 
The transaction saw Bank of China Limited’s Sydney Branch issue a CNY 2 billion (A$343 million) note offering, marking the first ever RMB offering targeting Australian institutional investors.
 
Renminbi is the umbrella terms for all denominations of Chinese currency, including the Chinese equivalent of cents, while CNY (Chinese Yuan) represents the currency's base unit.
 
The listing of the notes on the Official List of ASX Limited is the first ever listing of RMB-denominated bonds issued by a Chinese bank or corporate.
 
The deal also marks the first time RMB-denominated securities have been issued through an Australian branch of an offshore financial institution.
 
Alliance partners Linklaters and Allens acted for Bank of China, led respectively by Linklaters partner Michael Ng in Hong Kong and Allens partner James Darcy.
 
Darcy said the deal followed a string of recent developments in the internationalisation of the RMB.
 
“Importantly, we have recently seen agreement reached between the ASX and Bank of China with respect to the provision of RMB settlement services to the Australian and Chinese financial markets.
 
“Several benefits from this agreement are expected to flow, one of which facilitating the issuance of RMB-denominated bonds by Chinese enterprises into Australian capital markets.” 

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