Moscow Exchange bets on growth in Russia-China investments
15/11/2017 10:04
By Matthew Miller
BEIJING, Nov 15 (Reuters) - Deepening cross-border financial
cooperation between Russia and China remains a priority, said a
senior official with the Moscow Exchange (MOEX), with more
products expected for companies and investors to raise funds and
buy securities.
Russia and China have signed a series of agreements over the
last two years, including memorandums of understanding between
Bank of Russia and China's central bank on clearing and
settlement of Chinese yuan payments in Russia, and cooperation
on gold exchange trading.
But cross-border individual and portfolio investment has
been slow to materialise, with Chinese investors now holding
only about $3 billion in Russian equities and bonds, compared
with $65 billion in annual trade between the two countries.
"The ultimate goal is to reach with China the same level of
partnership we have had for many years with western financial
markets," said Igor Marich, who oversees MOEX's money and
derivatives markets.
New issuances now under discussion include exchange-trade
funds along with the long-anticipated issuance of a
yuan-denominated bond at MOEX, said Marich, who expected fixed
income to be a main driver, with some Russian sovereign bonds
offering yields of more than 8 percent.
China's Belt and Road initiative, the global infrastructure
and investment strategy enshrined in China's Communist Party
constitution last month, should also accelerate developments.
"I see growing interest of Chinese investors into Russia,"
Marich told Reuters. "That's one reason for cautious optimism.
The other real transactions have happened."
Marich pointed to CEFC China Energy's $9.1 billion purchase
of a stake in Russia's Rosneft Oil ROSM.MM and the
participation of China's Fosun International Ltd 0656.HK in a
consortium of investors that bought a 10 percent stake in Polyus
PLZL.MM , Russia's top gold producer.
Marich was in Beijing to promote the Moscow Exchange and
Belt and Road investment opportunities on the final leg of a
three-city tour that included Shenzhen and Shanghai.
In May, MOEX signed an expanded strategic cooperation
agreement with the Shanghai Stock Exchange that included
provisions to improve collaboration on market data and develop
and launch yuan and rouble quoted products.
In December, MOEX also signed an agreement with CITIC
Securities and Galaxy Securities to see the Chinese brokerages
provide access for their clients to Russian securities traded in
Moscow. urn:newsml:reuters.com:*:nL4N1EH1VY
(Editing by Jacqueline Wong)
((matthew.miller1@thomsonreuters.com;))
Keywords: CHINA RUSSIA/BRI