By Courtesy of Tax-News.com.
Bank of China (Hong Kong) Limited (BOCHK) and FTSE Group (FTSE) have announced a partnership to develop a new "FTSE-BOCHK Offshore RMB Bond Index Series" (New Indices).
It was said that the partnership brings together BOCHK's unique competitive position in the offshore RMB business, as well as FTSE's leading indexing expertise and global network, to provide the market with an industry-standard benchmark. It is hoped that the New Indices will "help global investors to capture better opportunities in the offshore RMB fixed income as an investable asset class."
Under the partnership, BOCHK Asset Management Limited is the adviser of the New Indices, while FTSE will offer calculation and management services with respect to the existing Offshore RMB Bond Indices provided by BOCHK. FTSE will also conduct the licensing procedures of the New Indices globally upon completion of the transition details.
Mark Makepeace, FTSE's Chief Executive, said: "We are delighted to be working with BOCHK to develop the offshore RMB bond indices offering. There is increasing demand for access to RMB fixed income products, and FTSE's global brand combined with BOCHK's track record in RMB indices will enable us to accelerate the development of a global investor offering in this area."
David Wong, Deputy Chief Executive of BOCHK, added that "BOCHK takes great pleasure in joining hands with FTSE Group to develop a new offshore RMB bond index series. Given the increasing significance of RMB in the world economy, we see growing demand for RMB fixed income products. In this regard, the introduction of the New Indices will offer those investors an array of quality benchmarks. It will also help facilitate the development of offshore RMB bond markets worldwide."
