TOC：
¢nH marKet Primer 3
CNH – Inception, evolution and expansion .......................................................................................... 4
Sources and uses of RMB in Hong Kong ............................................................................................... 5
FX and fixed income markets - RMB instruments in Hong Kong................................................... 7
CNH bonds ................................................................................................................................................... 9
More RMB centres – London, Taiwan and Singapore...................................................................... 12
Official institutions’ interest in the RMB market ............................................................................... 13
Trading different RMB FX markets ....................................................................................................... 14
Trading CNH and CNY fixes ................................................................................................................... 17
CNH market – Slower but healthier ...................................................................................................... 18
Key regulatory developments – Further support for offshore RMB .............................................. 20
Key milestones 2004-2012 .................................................................................................................... 24
¢redit PersPe¢tiffes 27
CNH – Credit perspectives ...................................................................................................................... 28
Regulatory changes continue to spur market development .......................................................... 28
Demand dynamics ................................................................................................................................... 29
Issuer overview ......................................................................................................................................... 29
eQUities PersPe¢tiffes 31
Hong Kong banks ..................................................................................................................................... 32
Pressure on system CNH deposit growth ........................................................................................... 32
Better deployment of CNH assets ......................................................................................................... 36
China’s interest rate cuts limit ability to reprice up CNH assets .................................................... 37
Expect persistent CNH margin pressure ............................................................................................. 40
Reiterate negative view on Hong Kong banks; prefer BOCHK ....................................................... 40