The deals should also grant improved onshore market access for Swiss banks.

The report, however, failed to help mainland shares and lift sentiment in the onshore market.

For starters, there's the government-run quota system which limits foreign access to China's onshore market.

Bank Negara Malaysia, however, made sure the spot rate remained relatively stable in the onshore market, traders said.

The onshore market dwarfs this, but the dim sum market has grown from practically nil a year ago.

QFII and RQFII are among the very few channels through which foreign investors can tap China's onshore market.

Issuers face strong pressure to achieve investment-grade ratings because there is currently no onshore market for high-yield bonds.

A couple of ETFs offer access to the dim sum market, but none to date access the onshore market.

A study by Bank Indonesia in 2012 showed the NDF market often had a significant impact on its onshore market.

In the Chinese onshore market, Xinjiang related stocks surged as China vowed to strengthen development in the restive northwestern region.

Traders and bond syndicate desks said China will remit the proceeds from the bond sale back into the onshore market.

In the onshore market, the yuan fell to a two-week low of 7.0295 per dollar.

Often, offshore markets would quote the rupiah 1 to 2 percent weaker than the onshore market.

But in the onshore market, it may need to pay 6-7 percent for a yuan loan.

Chinese property shares in the onshore market were weak again, although those listed in Hong Kong rebounded after two days of falls.

Foreign investors, who cannot directly invest in mainland equities, have eagerly embraced the QFII and RQFII schemes to tap China's onshore market.