Bank of China Hong Kong has teamed up with the FTSE Group to launch a new series of bond products that will measure the performance of RMB-denominated bonds issued and settled outside Mainland China.

The FTSE-BOCHK Offshore RMB Bond Index Series is designed, calculated and managed by FTSE, with BOCHK Asset Management acting as an advisor. It includes a benchmark index with sub-categories, which will allow participants to group the market by issuer type, outstanding maturity and credit rating. 

The move comes amid signs of growing internationalisation of the RMB and associated products in recent years. 

"According to the Bank for International Settlements' latest report, RMB trading has more than tripled over the past three years to $120 billion a day in 2013. It now ranks the ninth most traded international currency," said Dr Au King Lun, chief executive of BOCHK Asset Management. 

"The demands for RMB fixed income products as wealth preservation and portfolio diversification tools are expected to grow rapidly. [The Index Series] will facilitate the transaction and circulation of RMB bonds, as well as support the development of the currency in the global marketplace."

The FTSE-BOCHK Offshore RMB Bond Index Series will be reviewed monthly.