Covering and Dim sum bond: Difference between pages

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imported>Doug Williamson
(Layout.)
 
imported>Doug Williamson
(Identify Chinese context for renminbi.)
 
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Protecting the cash value of future proceeds usually from an international trade transaction, by buying or selling the proceeds in the forward market.
A bond denominated in Chinese renminbi, but issued and settled outside the People's Republic of China (PRC).


Although used interchangeably with ‘hedging’, covering is strictly speaking, protecting a future cash flow amount whereas  hedging refers to the protection of foreign-denominated accounting assets or liabilities against pure translation losses.
Initially the issuers were the PRC and Hong Kong banks.
 
As Chinese restrictions eased somewhat from 2010, Chinese non-financial companies (corporates), foreign banks, foreign corporates and eventually foreign regional governments and sovereigns also made issues.
 
 
The offshore Chinese renminbi is known as CNH.




== See also ==
== See also ==
* [[Forward market]]
* [[Bulldog bond]]
* [[Hedging]]
* [[China]]
* [[Formosa bond]]
* [[Hong Kong]]
* [[Panda bond]]
* [[Samurai bond]]
*.[[Sovereign]]
* [[Yankee bond]]
* [[Yuan renminbi]]

Revision as of 17:10, 27 July 2018

A bond denominated in Chinese renminbi, but issued and settled outside the People's Republic of China (PRC).

Initially the issuers were the PRC and Hong Kong banks.

As Chinese restrictions eased somewhat from 2010, Chinese non-financial companies (corporates), foreign banks, foreign corporates and eventually foreign regional governments and sovereigns also made issues.


The offshore Chinese renminbi is known as CNH.


See also