BOCHK, FTSE launch new offshore yuan index series

Bank of China (Hong Kong) Limited (BOCHK) said Wednesday that the company and FTSE Group ( FTSE) had launched the new FTSE-BOCHK Offshore RMB Bond Index Series.

The Index Series will measure the performance of RMB-denominated bonds issued and settled outside the Chinese mainland.

The Index Series is designed, calculated and managed by FTSE, with BOCHK Asset Management Limited acting as an advisor, to offer global investors transparent benchmarks, according to a statement issued by BOCHK.

The FTSE-BOCHK Offshore RMB Bond Index Series includes a benchmark index, with a number of sub categories, which will allow market participants to group the market by type of issuer, outstanding maturity and credit rating.

The FTSE-BOCHK Offshore RMB Bond Index Series offers a unique benchmark to meet the increasing global demand for RMB-linked fixed income products, such as exchange-traded funds.

"RMB is fast becoming a major currency not just for trading, but also for investment. The launch of our Index Series will further facilitate the transaction and circulation of RMB bonds, as well as the steady development of the RMB bonds market globally," said Au King Lun, chief executive officer of BOCHK Asset Management Limited.

The FTSE-BOCHK Offshore RMB Bond Index Series will be reviewed on a monthly basis according to readily available ground rules, according to the statement.

FTSE is a global leader in indexing and analytical solutions. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world. FTSE indices are used extensively by market participants worldwide for investment analysis, performance measurement, asset allocation and portfolio hedging.