HKEX and Thomson Reuters launch RMB index series

Firms hope to be at the forefront of RMB internationalization with currency index series.

Hong Kong Exchanges and Clearing Limited (HKEX) has teamed up with Thomson Reuters to release a series of RMB indices

The indices are meant to measure performance of RMB against a basket of global currencies which include USD, GBP, and EUR.

The two firms claim their indices will allow market participants to view intraday RMB movements versus other key currencies, determined by trade volume between issuers and Mainland China as per data from the Hong Kong Census and Statistics Department.

Chief Executive of HKEX said: “We see great opportunities in fixed income and currency for Hong Kong as the RMB continues to become more international. As Chinese capital goes global over the next 30 years, our indices will become a useful basis for products to help investors manage currency risk.”

The introduction of these RMB indices comes recently after the first sovereign RMB bond was listed outside of Mainland China.

Stephen Flagel, Global head of indices at Thomson Reuters, commented: “At a time when Chinese currency movements and market volatility are frequently observed, it makes sense for two trusted and independent names to launch these indices.  It is a great opportunity for us to partner with HKEX and provide a series of indices that will help market participants make better informed investment decisions and manage risks.”

Thomson Reuters said its new index series will provide market participants with benchmarks that reflect the development of the RMB’s effective exchange rate against other major currencies as well as be in compliance with the International Organization of Securities Commissions’ principles for financial benchmark governance and administration.