RED TAPE ROUNDUP: China set out Basel III timetable; India seeks to streamline foreign investment; Thailand encourages unrated bond issuance

In this round up of recent regulatory news, China’s CBRC publishes the final rules for meeting capital adequacy ratios, Hong Kong questions banks over their selling of high yield debt, India plan single route for foreign institutional investment, Taiwan get renminbi clearing bank and Thailand promotes unrated debt.

  • 02 Jan 2013
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The China Banking Regulatory Commission (CBRC) published detailed timetable for implementation of new capital rules under the Basel III framework on December 7, 2012.

Under the schedule, all commercial banks will need to begin adhering to the rules from January 1 and have a transition period of six years.

The country’s biggest lenders, the so-called systematically important banks will need to meet a minimum core Tier-1 ratio, Tier-1 ratio and CAR of 6.5%/7.5%/9.5% at end-2013 up to 8.5%/9.5%/11.5% by end-2018.

Although Basel III rules were not due to come into force globally until the start of this year, the CBRC has originally proposed that China’s banks obey the new rules from the beginning to 2012.This was subsequently postponed twice to the January 1,2013 deadline.

Hong Kong

The Hong Kong Monetary Authority is surveying banks on how much high yield debt they have sold, according to a report in the Wall Street Journal.

The one-page survey was sent to private and commercial banks in the city. It asks about the amount of high-yield bonds and related bond funds that lenders have sold, and whether banks have addressed the risk levels of the bonds to clients, said the people who had seen the document.


The Securities and Exchange Board of India (Sebi) has set up a committee that will look seek to provide a single route for foreign investment.

Headed by former cabinet secretary K.M. Chandrasekhar, the panel aims to unify the different channels for foreign investors such as those qualified foreign investors, foreign venture capital investors and non-resident Indians (NRIs).

India is regarded as having some of the most restrictive rules regarding foreign investment though Sebi has moved to relax a number of regulations this year increasing the amount that can be invested in the country’s bond markets.


The Bond Pricing Agency Malaysia (BPAM) in conjunction with The Thai Bond Market Association (ThaiBMA) and Indonesia Bond Pricing Agency (IBPA) have signed an agreement to help promote their local bond markets.

The three agencies, which provide data and analysis on their respective domestic bond markets, will begin by making their information available on each website. Future initiatives are expected to include the promotion and distribution of evaluated pricing as well as joint advisory and consultancy services.


After a month-long delay, on December 11 the People’s Bank of China (PBoC) announced it was appointing Bank of China Taipei branch as the renminbi clearing bank for Taiwan.

The news means banks in Taiwan will be able to greater provide renminbi services such as trade settlement, deposits and wealth management products.

Further details about the scope of the clearing bank’ activities have not been revealed.

China and Taiwan signed a memorandum of understanding (MoU) on August 31 that paved the way for Taiwan to have a renminbi clearing bank, the first country after Hong Kong to be permitted this. However, the decision on which bank would be appointed scheduled to take place 60 days from the signing of the MoU.


The Securities and Exchange Commission is in the process of changing its regulations to drive more bond issuance from unrated companies.

As it stands, companies are allowed to issue unrated debt through private placements, but only to fewer than ten investors. The securities regulator is in the process of adapting legislation to allow the private placements to be distributed between an unlimited number of buyers though they will have to be institutional investors or high net worth individuals.

The Thai Bond Market Association (ThaiBMA) estimates there are around 400 listed companies which haven’t used bonds as a source of funding.

The Bank of Thailand (BoT) is making adjustments to its bond issuance programme for 2013. The changes include no longer issuing four-year fixed coupon notes in response to a potential rise in the supply of long-term bonds by the government.

In addition, the BoT will increase the amount outstanding per floating rate bond (FRB) and will issue only one type of FRB - the three-year bond priced against three-month Bibor. The BoT will discontinue the issuance of both the two-year and three-year FRBs which were linked to three-month and six-month Bibor respectively.

  • 02 Jan 2013

Bookrunners of International Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 41,733.81 194 9.42%
2 HSBC 40,945.92 235 9.24%
3 JPMorgan 37,214.87 151 8.40%
4 Bank of America Merrill Lynch 29,284.07 123 6.61%
5 Deutsche Bank 20,416.10 78 4.61%

Bookrunners of LatAm Emerging Market DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Oct 2016
1 JPMorgan 13,268.07 33 6.30%
2 Bank of America Merrill Lynch 11,627.56 29 5.52%
3 Citi 11,610.06 30 5.52%
4 HSBC 10,091.34 29 4.79%
5 Santander 9,533.17 25 4.53%

Bookrunners of CEEMEA International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Oct 2016
1 Citi 13,617.40 57 11.05%
2 JPMorgan 12,607.77 55 10.23%
3 HSBC 9,327.72 50 7.57%
4 Barclays 8,643.78 30 7.02%
5 Bank of America Merrill Lynch 6,561.15 18 5.32%

EMEA M&A Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 JPMorgan 195.08 50 10.55%
2 Goldman Sachs 162.26 37 8.77%
3 Morgan Stanley 141.22 46 7.64%
4 Bank of America Merrill Lynch 114.20 33 6.18%
5 Citi 95.36 35 5.16%

Bookrunners of Central and Eastern Europe: Loans

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Oct 2016
1 UniCredit 3,966.12 27 13.01%
2 SG Corporate & Investment Banking 2,805.90 16 9.20%
3 ING 2,549.27 20 8.36%
4 Citi 2,526.98 15 8.29%
5 HSBC 1,663.71 16 5.46%

Bookrunners of India DCM

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 19 Oct 2016
1 AXIS Bank 5,944.45 123 18.53%
2 HDFC Bank 3,792.05 100 11.82%
3 Trust Investment Advisors 3,390.86 145 10.57%
4 Standard Chartered Bank 2,299.63 31 7.17%
5 ICICI Bank 1,894.86 51 5.91%