Fund Flows

CC Funds - Currency swaps are lure for 'dim sum' issuers

More and more foreign issuers are expected to tap the offshore renminbi (CNH) 'dim sum' bond market this year thanks in part to favourable rates in Hong Kong's rapidly-growing cross-currency swap market. We believe that issuance by foreign issuers will be strong if liquidity in both these markets continues to grow, and US$/CNH cross-currency swap rates continue to rise faster than 'dim sum' bond yields.

Fall in China forex reserves adds pressure for liquidity easing

Data from the People's Bank of China (PBOC) published today shows a $20.6bn, or 0.6 %, fall in China's official foreign exchange reserves which slipped to $3.18tn in 4Q11. A fall in reserves in both November and December represents the first consecutive monthly fall since the first quarter of 2009. We think the figures show continued outflows of "hot money" and raise pressures for a further easing in domestic liquidity.

A hot money exodus

Chinese hot money is rushing overseas, raising a host of implications for the renminbi, domestic monetary policy and wealth managers around the world.

A turning point for renminbi internationalisation?

Investors who prefer to take a longer-term view on the renminbi can find comfort in knowing that Beijing is still eager to internationalise its currency.

CC Funds - Some 'stars' see opportunities after the sell-off

Week to Friday May 6, 2011

CC Funds - Financials and steels in focus

Week to Friday April 15, 2011

Investor frenzy on new art stock exchange

After share prices on Tianjin's new "art stock exchange" ran off the scale, regulators behind the scheme were forced to step in.

Flows to China retreat

Fears of further tightening in the build up to the announcement of November's soaring inflation figure deterred investors away from China.

Flows to China hold up despite inflation fears

Flows to China remained resilient in the two weeks ending Nov 24 in spite of news during the period that inflationary pressures are rising.

Manager flows to China strong in the weeks prior to October data release

Strong flows to China over the few weeks ending Nov 10, prior to the announcement of higher than expected October inflation data on Nov 11, suggest fund managers have remained more upbeat about the Chinese economy than investors.

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09 Feb 2012

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China Confidential Funds

China Confidential Funds, a new research service launched by FT China Confidential, is dedicated to illuminating the mainland fund industry. Our team of fund industry experts in Shanghai search out the interesting trends in fund performance, strategy, interactions with overseas funds, regulatory changes, distribution and management. We also use a proprietary system to track the emerging flows of Chinese money. Click here to find out more.

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