The Chinese Yuan Internationalization and Financial Products in China

by Zhang, Peter G.; Chan, Thomas

• ISBN13: 9780470827376
• ISBN10: 0470827378
• Format: Hardcover
• Copyright: 2011-02-22
• Publisher: Wiley

Summary

Few topics have attracted as much attention worldwide in recent years as the RMB. These debates have gained added urgency in light of the financial crisis and the topic of RMB revaluation is now being actively debated in countries all over the world from Tunisia to the United States. This book explores the ever-changing role of the RMB and the related derivative products. However, it does so from a view that is heavily influenced by the fallout from the financial crisis as well as the in the context of the increasing maturity of the Chinese capital markets. The author has drawn on his experience as a regulator to provide invaluable views, insights and information on RMB derivative products and the development of this market going forward.Key topics include: Overview of current China economy and its capital market In-depth analysis on the China's banking system and foreign exchange system Extensive analysis of on-shore and off-shore financial products in China Explanation of the needs and reasons for RMB products innovation Insights into the internationalization of the RMBNot only will this book leave its readers with a much clearer idea of the structure of China's capital markets but it also gives insights on the market going forward leveraged through Peter Zhang's many years of experience as both a senior banker and through his integral role in the key regulatory authority of the banking sector, the CBRC.Dr Zhang obtained his BS and MS in Computer Science in mainland China, before being sent to study in the United States in 1987. He has served as manager, senior associate or vice-president in various financial institutions, including MMS International (Standard & Poor's Group), the Union Bank of Switzerland (New York Branch) and the Chemical Bank (head office) in New York City. After working for the Chase Manhattan Bank (Tokyo Branch) as a vice-president for about three years, he broadened his expertise to financial law at Harvard Law School. He joined the Shanghai Futures Exchange as Chief Financial Engineering Advisor in 2003 and appointed as Senior Director of Research and Development Center of Shanghai Futures Exchange early in 2004 to build and promote the financial derivatives industry in China. An experienced financial expert with many articles and books published both in English and in Chinese, Dr Zhang has been travelling around the world to give seminars and business presentations, particularly to various government organizations, institutions and companies throughout China. His representative works include Exotic Options: A Guide to Second-Generation Options (used by many international financial institutions) and Barings Bankruptcy and Financial Derivatives.

Author Biography

Dr. Guangping (Peter G.) Zhang served as manager and vice president in various financial institutions including Union Bank of Switzerland (UBS) New York Branch and Chemical Bank head office in New York in the area of over-the-counter derivatives. After working as Vice President for Chase Manhattan Bank in Tokyo, he further broadened his expertise at Harvard Law School. He jointed the Shanghai Futures Exchange in 2003 as Chief Financial Engineering Advisor and Senior Director of Research & Development Center, and the newly-established Supervisory Cooperation Department for Banking Innovation of China Banking Regulatory Commission (CBRC) in 2005 as Deputy Director General. He re-allocated to CRRC Shanghai Bureau as Deputy Director General in 2007. Dr. Zhang is an experienced financial expert with many articles and books published both in English and Chinese including Exotic Options – A Guide to 2^nd Generation Options (1998); Chinese Yuan (RMB) Derivatives Products (2004, English edition), Chinese Yuan Derivatives and Practices (2006, 1^st and 2008, 2^nd, Chinese eds.), and Chinese Yuan Product Innovation, (2010, Chinese ed.).

Thomas Chan is an audit partner in KPMG financial services practice with more than 16 years of audit experience at KPMG China. He has comprehensive experience in auditing listed companies, accounting standard conversions and internal control compliance reviews. Thomas has extensive knowledge on operations of and regulatory requirements on commercial; banks, securities firms, trusts, asset management companies, leasing companies and private equity funds. He is a fellow member of both HKICPA and ACCA.

Table of Contents

Financial Crisis and Financial Innovation

The Urgent Need for Innovative RMB Products

China's Economy

China's Banking System

China's Capital Market

Foreign Exchange System and International Investment Position

RMB Forwards

Bond forwards

RMB interest rate swaps

Forward Rate Agreements

Wealth management products in China

Renminbi Non-Deliverable Forwards

RMB Non-Deliverable Options

RMB Non-Deliverable Swaps

Non-deliverable RMB Interest Rate Swaps

H-shares Index Futures and Options

Hong Kong's RMB Bond Market

Current Status of RMB Internationalization

Major International Reserve Currencies and Liquidity of Their Key Products

Current Status of RMB Internationalization and Risk Prevention

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