, China

ICBC, CCDO, SGX to endorse new renminbi bond indices

The new bond indices can be used as performance basis for investing in RMB bonds.

The Industrial and Commercial Bank of China (ICBC), China Central Depository & Clearing (CCDC), and the Singapore Exchange (SGX) have agreed to jointly promote the newly-launched suite of ChinaBond-ICBC RMB Bond Indices, according to a press release.

Based on the memorandum of understanding (MOU), the indices will be comprised of the ChinaBond Index ICBC Key Terms Treasury Bond Index, ChinaBond ICBC 1-5 year Key Terms Policy Bank Bond Index, and ChinaBond ICBC 3-5 year Credit Bond Index, which were developed by CCDC subsidiary ChinaBond Pricing Center together with ICBC and can be used as a performance basis for investing in renminbi bonds.

The three parties will jointly increase investor awareness of the Bond Indices through educational sessions and publicity, with the SGX being the first exchange to display the Bond Indices outside China through its website in accordance with China’s efforts to internationalise its currency.

Moreover, the ChinaBond-ICBC RMB Bond Index aims to expand China’s financial industry to offshore markets, attract international capital investments, promote capital financing using the renminbi and the usage of the currency in Singapore to meet the needs of international investors.

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