China A-shares: traders want access to onshore funding

Inclusion in MSCI will drive CNH squeeze unless CNY market is opened or settlement extended

Boat outside Hong Kong

Offshore renminbi funding costs are likely to rise following the addition of Chinese mainland shares in two MSCI benchmarks on May 31. In an effort to ease growing pressure on the currency and stem a pending liquidity crunch, global dealers are calling for access to onshore funding and an extension of the same-day settlement horizon on Stock Connect equity trades.

As much as $17 billion could flow into onshore Chinese markets once MSCI includes 234 stocks from mainland China – known as A-shares

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: