RMB globalisation

One of ChinaÆs most prominent institutional investors analyses the steps it expects could lead to a freely floating currency.

They're bullish on emerging markets, predict the renminbi will be allowed to strengthen and suggest the best exposure to China is through investments outside the country, among other things.

The big watershed in China this year will be an increase in cross-border renminbi settlements, says Aaron Boesky at Marco Polo Pure Asset Management.

Enoch Fung, Asia economist at Goldman Sachs, explains why Hongkongers will soon be transacting as much in renminbi as in their own currency.

Asset managers believe Western economies, other Asian currencies and commodities will benefit from renminbi reform. But they are less positive on China itself.

Harvest, HSBC and RCM are among those fund managers keen to develop renminbi products traded in Hong Kong, but many details still need clarification.

The private-equity firm signs agreements with the governments in Shanghai and Chongqing to set up two renminbi-denominated funds of Rmb5 billion each to invest in Chinese companies.

Jim Walker of Asianomics argues that, due to the euro’s troubles, the renminbi is actually going to weaken against the dollar in the short term, in a last-ditch effort to sustain Chinese economic growth.

China's currency policy has returned to the framework employed before the global financial crisis, but the new environment may not be so hospitable, warn analysts.

The inflows are linked to positive sentiment on China, strong Indian hedge-fund performance, increased fund-launch and corporate-deal activity, and renewed interest in Japanese funds.

The Chinese asset manager launches a fixed-income renminbi fund that is set to be the first of many such vehicles.

Custodians and fund-admin providers are ready to tap potential opportunities in the renminbi funds market, but worry that RMB bonds are thin on the ground.