"Dipss Bond" refers to bonds issued in Hong Kong, denominated in RMB. Because compared with the tens of billions of bonds issued abroad at home, these corporate bonds are very small in scale, just like desserts after a meal, so they are called "Dipss Bonds". Book friends uploads are different from debt-related financial instruments in China. Whether it is the issuer itself or the bond pricing, there is basically no control over the issuance of dim sum bonds. Of course, if funds need to be injected into the country, they need to be allowed by relevant regulatory agencies in China. In comparison, the qualification requirements for issuing bonds in China are restricted, and non-state-owned enterprises and other super-large enterprises cannot reach them, let alone foreign capital and private enterprises.

The main background of the birth of dim sum bonds is precisely because China vigorously promotes the internationalization of the RMB and enhances the international status of the RMB. One of the important steps is to let the RMB "go global" and allow it to circulate widely abroad, and ultimately make it one of the important international settlement currencies. The starting point of this policy is obvious: allowing the excess RMB to flow out of the border can not only earn the benefits of "sindividual tax" for the US Treasury holding a deficit of trillions of dollars, but it is still not panic. It is the benefit of the "sindividual tax" brought to the United States by the US dollar staying abroad. It is very real, and it can also reduce the liquidity of the domestic RMB and alleviate inflation pressure.

The idea of ​​issuing RMB bonds overseas has long been proposed by the domestic financial community, but at that time the issuer considered limited to domestic financial institutions to control risks, so the scale has not increased until recently, and the situation has changed significantly. Zheng Feilong told Yang Xing that the central government has begun to loosen the regulation of RMB overseas circulation control measures and is preparing to expand the qualifications of bond issuers to any company in the world. As long as it is willing to pay the corresponding price, any company can borrow RMB debts from the Hong Kong Overseas RMB Center to raise funds.

After entering the century, the international economy suffered a global economic crisis brought about by the Internet bubble. After several major reductions in interest rates by the Federal Reserve, it was barely restored. The United States has become the leader in a round of economic growth with its 3A rating. Its domestic interest rates are very low. Many hedge funds see the opportunity, borrow a large amount of US dollars, and use interest spreads such as the US dollar, the euro, and the Japanese yen to make profits.

At this time, the domestic country was also under strong pressure from the United States. Because of decades of reform, everyone saw the rapid growth of China's economy. Now there are fewer people cursing China will collapse tomorrow. Since China's economic prospects are promising, the international financial community is optimistic about the appreciation trend of the RMB.

But according to general economic laws, the gradual strengthening of the RMB is a good thing for deposit holders, but for borrowers, it is just the same as the contrary, foreign-funded enterprises in China should vigorously issue US dollar bonds. The opposite is that the news that the RMB "dssum bond" is relaxed was released not long after it was released, and the heads of many overseas financial institutions broke through Zheng Feilong's threshold.

Zheng Feilong proudly explained to Yang Xing that this is actually a mystery. Over the years, although the RMB has adopted capital supervision, as economic exchanges with neighboring countries become increasingly frequent, there are still a large number of RMB flowing out of the country. Although the amount of RMB flowing abroad cannot be accurately estimated, taking the RMB mobile base in Hong Kong as an example, it has accumulated about 400 billion yuan, but since there is no RMB investment channel for profit, the opportunity cost is zero, which is wasted.

This is directly reflected in the fact that the deposit interest rate of RMB in Hong Kong is less than 1%, and the interest rate of issuing "dssert bonds" is also very low. The three-year interest rate is only above 1%. At this time, the domestic three-year deposits are around 4.5%. As long as there is a way to take advantage of the interest rate difference between the two places, even if you do not invest after issuing the bond, you can enjoy the returns brought by the interest rate spread. Therefore, the risk of investing in dim sum bonds is very small, and the return is not low. There is another advantage of domestic and foreign companies issuing RMB dim sum bonds abroad, which is that they can achieve the exposure of the asset-liability currency exchange rate naturally hedging.

Simply put, foreign companies' assets, income, etc. in China are all recorded in RMB, but foreign capital and foreign headquarters generally use foreign currencies such as the US dollar and euro. Although foreign companies can enjoy certain exchange returns when operating in China, most foreign companies investing in China are industrial enterprises. In fact, they do not like the significant fluctuations in exchange rates. After all, they can enjoy the appreciation discount of RMB when purchasing materials and parts abroad. However, once the RMB depreciates, the cost will rise and the export price will also rise, resulting in the cancellation of orders, which will greatly reduce the benefits they have made in China.

For prudent considerations, foreign companies would rather give up the gains during appreciation in exchange for good loss during depreciation. One of the methods adopted is to allow overseas parent companies to directly invest in RMB, so that RMB appreciation will increase, and the assets and debt will increase, and the same will decrease - not make or lose profits and losses due to exchange rate fluctuations, so that the company can concentrate on operations and not distract from exchange rate fluctuations. "Dimmill bonds" are equivalent to an important financial regulator.

Another point is that the State Administration of Foreign Exchange has provided a very generous condition for the first batch of foreign companies that issued "dssert bonds" this time, that is, allow foreign companies to issue bonds to be allocated to domestic use. This is an unprecedented move. To some extent, it even violates the original intention of internationalization of the RMB. Because foreign companies do not have to be idle abroad, it can be used to give back to domestic companies. If anyone can issue RMB bonds at such a low price in Hong Kong and then freely transfer them back to domestic use, even if they deposit the interest rate in the bank, they can earn a risk-free interest rate difference, which is simply a squeezing and going to participate.

If domestic and foreign companies follow the rules like this, it will lead to a large amount of overseas RMB funds returning, which will inevitably increase domestic RMB liquidity, increase inflation pressure, and eventually even lead to a reversal of the trend of RMB internationalization. Relevant regulatory agencies allow this to do so. The main reason is that the outside world still has doubts about "dssert bonds". In order to give investors confidence, companies that allow the first batch of dim sum bonds have been strictly selected. Not only have good reputations in domestic investment for many years, but also have a very internationally renowned foreign company.

The issuance of "dssum bonds" in their name is an opportunity to "sell" the RMB. Given that the RMB has now become a hot spot for many overseas financial institutions in the world, not long after the news broke, many well-known foreign companies and large overseas financial institutions have sent people to lobby for several major foreign currency regulatory agencies. The State Administration of Foreign Exchange is the primary public relations target.

Yang Xing, who knows history, knows that the domestic determination to promote the internationalization of the RMB will not be shaken. After all, when a country's economic strength grows rapidly, its basic currency becomes an internationally accepted hard currency and reserve currency. So he deliberately leaked his ideas to Zheng Feilong, so he did not regret it. His halo is already bright enough, so there is no need to add another story now that Zheng Feilong talks about the advantages and disadvantages of dim sum bonds. I have to admit that the times can create heroes.

Yang Xing knew almost everything about the internationalization of the RMB and the opportunity of Hong Kong to consolidate its position as an international financial center in both lives. This time he came to Zheng Feilong to talk about this matter in general, except for talking about it with him, he had his own purpose. After recounting the old story, he directly asked about the trading situation of gold and oil futures that the Shanghai Handan Futures Exchange was preparing to launch.

Last year, he turned his attention to the international gold market, which is a place of 10,000 taels of gold. After purchasing gold mines in South Africa and investing in Standard Bank of South Africa, he has become a big player in the world gold market, and he is eager to use the power of the Rothschild family to gain one of the five major gold banks to set the world gold price. At this time, the international gold price has been hovering for a long low in the entire 1990s, and the European and American central banks sold gold in large quantities in stock, causing the gold price to fall sharply. The entire gold market is in a stage. At this time, he has invested a lot of gold in the international market, which is very beneficial to stabilizing the market and raising the gold price. When the gold price rises sharply in the future, it will be a 10,000 yuan profit.

At the end of last year, the four major gold banks, led by Rothschild Bank, finally relaxed and agreed to use the fifth gold bank to replace the first Boston Bank of Credit Suisse, but also put forward conditions. At most, the large banks that cannot be accepted will be allowed to replace the joint consortium composed of gold funds, gold producers, commercial banks and large gold buyers. This is a method of mixing sand to reduce the strength of the fifth competitor. The other four major gold banks still dominate. Rothschild and others are scheming.

But this result made Yang Xing very satisfied. He knew that desire would not be fulfilled. It was indeed difficult to become one of the five major gold banks based on his strength and the South African Standard Bank. However, now the fifth largest gold bank is allowed to disperse its equity. It would be natural for him to attract domestic, Hong Kong and Southeast Asian Chinese capital to join. The State Administration of Foreign Exchange has always been interested in exchange for some US dollar bonds in foreign exchange reserves for gold reserves to avoid risks. Naturally, it is also one of the active participants behind the scenes.

Once you get a seat in the London Gold Pricing Committee, the domestic gold price and international gold price will inevitably be linked. Various financial businesses around gold will also become financial management methods. It is imperative to open gold futures in the past life. The Shanghai Stock Exchange only opened gold futures in 2008. At that time, the gold price had risen to a very high price. Domestic investors did not get much benefit. If they were opened at this time, as the US dollar and oil prices soared, it would inevitably allow early investors to make a big profit. Under the domestic herd mentality, it can greatly attract idle funds from influx of housing speculation, stocks and even garlic and ginger, to alleviate the pressure of domestic financial reform, and also provide many wealthy people with stable and reasonable financial management methods to continue.

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The second part of the rebirth of the business world is famous Chapter 734 Dim sum bond

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