Treasury Markets Association to Launch Renminbi Bond Price Fixing
For more information, please contact:
Melissa Ng at 212-752-3320
Daniel McAtee at 202-238-6360
Wing Yan Tong at 415-835-9315
July 11, 2007 - The Treasury Markets Association (TMA) announced today that it will launch a daily price fixing commencing July 12, 2007 for renminbi denominated bonds issued in Hong Kong.
The introduction of the fixing will enhance the price transparency of the renminbi bonds and facilitate the development of the renminbi bond market in Hong Kong. The fixing will be launched on the same day as the first renminbi bond is issued in Hong Kong and will be extended to other new renminbi bond issues in the future.
The Renminbi Bond Price Fixing is calculated by taking the arithmetic mean of the mid-price quoted by designated Contributing Banks, excluding the two highest and the two lowest prices (see Annex A for details). A total of 14 banks have been designated by the TMA to contribute quotes (see Annex B).
There will be one Official Fixing per day, published at 11:30 a.m. on every trading day from Monday to Friday. The Closing Reference Price will also be published at 4:30 p.m. on the same day.
Chairman of the TMA Executive Board Mr. Y.K. Choi said the TMA fully supports the issuance of renminbi bonds in Hong Kong, which will enhance the breadth of the territory’s treasury markets. “Apart from launching the fixing, TMA is actively considering other means to help develop the renminbi bond market in Hong Kong,” he added.
Chairman of the Market Development Committee of TMA Mrs. Anita Fun said the launch of the Renminbi Bond Price Fixing would be conducive to the development of the renminbi bond market in Hong Kong. "In addition to enhancing transparency of the market, it will serve as a market benchmark for future renminbi bond issues," she said.
Bloomberg L.P. has been appointed the Calculating Agent of the Fixing. The Renminbi Bond Price Fixing information will be published on Bloomberg via the Treasury Markets Association page TMA<GO>. The fixings will be released at 11:30 a.m. and 4:30 p.m. Hong Kong time from Monday to Friday except on public holidays or if Typhoon Signal 8 and above or the Black Rainstorm warning is hoisted.
#####
Annex A: RMB Bond Price Fixing Methodology
| Ownership of Fixing |
Treasury Markets Association |
| Calculating Agent |
Bloomberg L.P. |
| Contributing Banks |
Appointed by the TMA and reviewed annually. |
| Issues All outstanding |
RMB bond issues as designated by the TMA.1 |
| Types of Fixings |
Official Fixing: To be computed at 11:05 a.m. and published at 11:30 a.m. on every business day from Monday to Friday.
Closing Reference Prices: To be computed at 4:05 p.m. and published at 4:30 p.m. on every business day from Monday to Friday. |
| Fixing Basis |
Mid price quoted up to 2 decimal places. |
| Calculation |
Arithmetic mean of the valid quotes supplied by the contributing banks after excluding the two highest and two lowest quotes. |
| Data Publication |
The RMB Bond Price Fixing information will be published on Bloomberg via the Treasury Markets Association page TMA<GO>. |
| Contingency Arrangements |
The fixing shall not be computed nor published if Typhoon Signal No. 8 and above or Black Rainstorm warning is hoisted for the whole day or un-hoisted after 12 noon that day. However, if the Typhoon Signal No. 8 and above or Black Rainstorm warning is un-hoisted before 12 noon, the Fixing shall be computed and published at 14:30 p.m. on that day. |
1 Initially, the fixing will reference all outstanding RMB bond issues. At a later stage when more issues are available, the TMA may designate benchmark issues of different tenors for fixings. It may also instruct the Calculating Agent to provide non-benchmark fixings.
Annex B: List of Contributing Banks (in alphabetical order)
Bank of China (Hong Kong) Limited
Bank of Communications Co., Ltd.
BNP Paribas
China Construction Bank (Hong Kong)
Citic Ka Wah Bank
Dah Sing Bank
Hang Seng Bank Limited
ICBC (Asia)
Nanyang Commercial Bank, Ltd.
Standard Chartered Bank (Hong Kong) Limited
The Bank of East Asia, Limited
The Hongkong and Shanghai Banking Corporation Limited
UBS AG
Wing Lung Bank
|