Scaling up RMB Internationalization
Asset Benchmark Research
Progress amid uncertainty
2016 Renminbi Internationalization Report
I. Executive summary
II. About the survey
III. Overview of major regulatory changes and update on renminbi internationalization
IV. Use of renminbi and One Belt, One Road
a. Cross-border activity
b. Cross-border trade settlement in renminbi
c. Attitude towards adopting the renminbi for trade settlement
d. Challenges to further renminbi adoption
e. One Belt, One Road
V. Cross-border treasury integration
VI. Financing
a. Renminbi funding outside mainland China
b. Renminbi-denominated loans outside mainland China
c. Renminbi-denominated bonds outside mainland China
d. Overseas corporates: Panda bonds
e. China corporates: Borrowing from offshore markets via FTZs
VII. Renminbi risk management
VIII. Institutional investors
a. Trends in allocation to renminbi in investment portfolios
b. Preferred access channels
c. Increasing allocations to CNY onshore and CNH offshore assets
d. Inclusion of the renminbi in IMF Special Drawing Rights
IX. Working with Chinese banks
a. Readiness of corporates to engage overseas branches of Chinese banks for cash management
b. Readiness among foreign institutional investors to engage Chinese custodians
X. Conclusion
I. Executive summary

The international acceptance of China’s currency, the renminbi, continues to grow. The global renminbi survey conducted by Asset Benchmark Research (ABR) on behalf of CCB finds both progress and pull-back in various aspects of the process. The annual survey aimed to gauge the level of acceptance of the renminbi in cross-border trading and financing activities among China-based and foreign corporations. Altogether, 210 companies participated in the survey conducted in August and September last year. 70 of the companies are based in China. We also gauged investor appetite for the renminbi by evaluating portfolio allocations of more than 300 institutional investors and conducting 13 in-depth interviews with investors on renminbi trends.

Although Chinese regulators continue to pursue policies whose long-term goal is to establish the renminbi as a global currency for the purpose of trade and investment, renminbi internationalization appeared to decelerate somewhat in 2016 after fast development over the last few years...