Fuelled by the belief that China’s controls are holding back the value of its currency, investors around the world are keen to take advantage of the perceived one-way bet on the appreciation of the renminbi. While there is currently a dislocation between on and offshore pricing of the currency, eventual convergence looks inevitable.

More active central bank involvement in currency markets has reduced volatility but also increased tail risk. Tim Carrington, Global Head of FX, believes investors must be extra vigilant amid greater market uncertainty.

The pace of reform in the Chinese capital markets is gathering pace, already creating great opportunities for foreign investors, especially in futures. In such a climate, being fully informed and able to understand the complexities of the domestic market is key to unlocking its true value.

European insurers have been stifled for years by fundamental disagreements over Solvency II. Now, thanks to a rare show of European unity, they have some clarity. A reallocation of up to EUR7 trillion of insurance assets may follow, creating significant market distortions as well as investor opportunities.