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June 23, 2016

Thomson Reuters and HKEX Launch Co-Branded Renminbi Index Series

Indices provide market participants with an independent, transparent, and intraday view of RMB movements against a basket of other major currencies, designed to facilitate trading and investment decisions

Hong Kong – Thomson Reuters and Hong Exchanges and Clearing Limited (HKEX) today launched a series of Renminbi (RMB) indices which measure the intraday performance of RMB against mainland China’s most important and relevant trading partner currencies. The indices measure the performance of RMB against a basket of key currencies.

The primary index measures the performance of CNH against a basket of 14 key currencies.

 

Primary Index

Base Currency

Basket Currencies

TR/HKEX RXY Global CNH


CNH

AUD, CAD, CHF, EUR, GBP, HKD, JPY, KRW,

MYR, NZD, RUB, SGD, THB, USD

 

Index Variants

 

 

TR/HKEX RXY Global CNY


CNY

AUD, CAD, CHF, EUR, GBP, HKD, JPY, KRW,

MYR, NZD, RUB, SGD, THB, USD

TR/HKEX RXY Reference CNH


CNH

AUD, CAD, CHF, EUR, GBP, HKD, JPY,

MYR, NZD, RUB, SGD, THB, USD

TR/HKEX RXY Reference CNY


CNY

AUD, CAD, CHF, EUR, GBP, HKD, JPY,

MYR, NZD, RUB, SGD, THB, USD

 

The indices allow market participants to view intraday RMB movements according to a transparent rules based methodology. The weight of each currency is determined by calculating the volume of trade between its issuer and mainland China, as per publicly available data from UN Comtrade. All indices are calculated hourly using WM/Reuters rates, a leading foreign exchange (FX) reference for indices and financial contracts worldwide.

“We are delighted to further strengthen our commitment to the region, to the FX market and robust benchmarking with the launch of our co-branded RMB index series with our longstanding partner HKEX,” said Stephan Flagel, Global Head of Indices at Thomson Reuters.

“In view of China’s internationalisation and RMB’s increasing presence as a global trading currency, it is a great opportunity for us to partner with HKEX to provide a series of indices that will use global standards to help market participants make better-informed investment decisions and manage risks.  At a time when Chinese currency movements and market volatility can be observed, it makes sense for two trusted and independent names to launch these indices to capitalise on the significance of RMB’s internationalisation,” he added.

During a time of increased regulatory scrutiny worldwide, the new index series provides market participants with benchmarks that reflect the development of the RMB’s effective exchange rate against other major currencies and is designed to be transparent, tradeable and compliant with the International Organisation of Securities Commission’s principles for financial benchmark governance and administration.

“This co-branded index series is another important addition to our infrastructure for RMB products,” said Charles Li, Chief Executive of HKEX. “As Chinese capital goes global over the next 30 years and more international equities and commodities are priced in RMB, our RMB indices will become a useful basis for products to help investors manage currency risk.” 

“We see great opportunities in fixed income and currency for Hong Kong and HKEX, as RMB continues to become more international.  We continue to strengthen HKEX's leadership in introducing RMB products for the offshore market and develop Hong Kong as the global asset pricing centre for China,” Mr Li added. 

For more details, an indices fact sheet, methodology, FAQ are available on Thomson Reuters website. 

 

Thomson Reuters

Thomson Reuters is the world’s leading source of news and information for professional markets.  Our customers rely on us to deliver the intelligence, technology and expertise they need to find trusted answers.  The business has operated in more than 100 countries for more than 100 years. Thomson Reuters shares are listed on the Toronto and New York Stock Exchanges. For more information, visit www.thomsonreuters.com.

 

Hong Kong Exchanges and Clearing Limited

HKEX is a leading operator of exchanges and clearing houses, and one the world’s largest exchange groups by market capitalisation.  The Group operates Hong Kong’s securities and derivatives markets as well as four clearing houses in Hong Kong: three provide clearing and settlement services for exchange-traded products and one focuses on the over-the-counter market.  HKEX is the frontline regulator of companies listed in Hong Kong.  HKEX is a leader in the trading and clearing of commodities derivatives through its ownership and operation of the London Metal Exchange (LME), the world’s premier base metals market, and the LME’s clearing house LME Clear.  In January 2016, HKEX announced its Strategic Plan for 2016-2018, which includes plans to develop its multi-asset class capabilities that will enable it to achieve transformational growth arising from the Mainland’s integration with the world markets.  Additional information is available on the HKEX website (www.hkexgroup.com). 

 

CONTACT

HKEX, Corporate Communications
Scott Sapp
Office: 2840 3860
Email: scottsapp@hkex.com.hk

Wong Sau Ching
Office: 2840 3856
Email: wongsauching@hkex.com.hk

Thomson Reuters
Judy Lam
Office: 3761 1944
Email: judy.lam@thomsonreuters.com 

Janet Jin
Office: 6201 0526
Email: janet.jin@thomsonreuters.com