Hong Kong has published its second consultation paper (CP2) on a resolution regime for financial institutions, as it readies itself for a new set of capital requirements – Total Loss Absorbing Capacity (TLAC). Market participants expect bond volumes to go up as banks prepare for the new regime, although for that to happen, the government will need to come up with answers to some tough questions, writes Rev Hui.
A long-stalled proposal to allow real estate investment trusts (Reits) in China re-emerged this week. The plan, slated for the first half of this year, is expected to help de-gear the balance sheets of Chinese homebuilders and tide them over a possible liquidity crunch. But as the plan has been on ice for a decade, questions abound as to its effectiveness — and whether it will find willing buyers and sellers, writes John Loh.
Pelabuhan Indonesia II (Pelindo II) surprised loans bankers this week with its decision to limit a $1bn borrowing to just over half that amount, causing the cancellation of general syndication. This was just the latest twist for a loan that has been anything but straightforward, though the outcome is unlikely to hurt the borrower in the long run.
- TLAC takes shape as HK has second consultation
- MAXpower and Tower Bersama prep return to dollar
- US helps CAR hit Asian high yield highway in popular debut
- Dial’s heavily covered debut enlivens Asian HY
- Chemara fails to win regulator’s nod for $180m Spac
- China inches closer to Reit market launch but doubts linger over small print and yields
- Guolian Securities targets first half IPO in Hong Kong
- India heats up ECM with $4bn Coal India block sale
Standard Chartered has promoted Aaron Russell-Davison to the newly created role of head of debt capital markets as it continues to develop its bonds franchise.
A surge in RMB activity in Africa could be set to get under way soon. The Mauritius central bank recently argued that the country was ready to become Africa’s first RMB hub. Others, such as Kenya and South Africa, have already stepped up their involvement in RMB internationalisation over the past few years via FX reserves and the dim sum bond market. But so far, Chinese regulators have shied away from any official moves towards setting up clearing arrangements.
- Russell-Davison to lead DCM at StanChart
- StanChart names new DCM chief
- Chan heads up UOB Hong Kong’s DCM unit
Asian investment grade bond issuers have made their presence felt in the euro market in recent years as they seek diversification. With the European Central Bank’s quantitative easing programme set to lower rates, now would seem the be the ideal opportunity for more Asian names to target eurozone investors. But with US large caps also eyeing euros, Asian credits are likely to get pushed aside.
China’s ECM market had a tough start to the week, after measures by the regulator to clamp down on excessive margin lending by brokerages took their toll on stock markets, with equities plunging the most in years. But investors that fell victim to this volatility should take it in their stride. The China Securities Regulatory Commission’s stringent approach is smart — and bodes well for stronger markets in the longer term.
Just when it looked like state-backed 1MDB was finally ready to put its energy assets on the market for Malaysia’s biggest IPO in years, the listing has come up against another delay. That hardly inspires confidence in the sovereign wealth fund. But with a new president in place, there is now a chance to set things straight — not only for the country’s capital markets but also for the sovereign itself.
From The Weekly
- Thailand set to blaze IPO trail in southeast Asia
- ANZ cost-saving CNH B3 bond to inspire non-Chinese FIGs to follow suit
- Asian bankers greet eurozone stimulus with scepticism
- Superman strikes again as two-step pricing nets Cheung Kong $599m
- China’s State Grid completes dual tranche euro debut
- Essar Oil drills advance payment based loan
Cartoon of the Week
- JPX, SGX launch direct network for listed derivs
- ICAP, Wood Info pair to offer offshore financials to China
- Total Derivatives: Currency move backs short-end CNY bid
- Total Derivatives: CNY 1s/5s inversion to correct?
- Total Derivatives: Inverted curve to extend CNY bid
- The long road to equity derivatives trading in China
- CNH futures gain popularity as A-share exposure hedge
- CLS expands FX settlement services following BoK green light
- TriOptima completes maiden compression with JSCC
- Total Derivatives: CNY well bid but 5y correction due
More from Asia
- The Yanks are coming! US issuers will muscle out Asian names in euros
- To the MAX: Indonesian gas specialist fires up first bond
- Comment: Time for China’s domestic players to jump aboard the RMB internationalisation train
- Hutchison Whampoa looking for £6bn in loans for O2 takeover
- Baosteel gears up for maiden euro bond
Featured Bank Profiles
Latest news and league table performance
Asiamoney: December 2014
- China: Reform challenge — a mountain still to climb
- China: CIC’s opaque offshore investment plans
- India: Miles to go
- ASEAN Bonds: Stronger together?
- Japan: The sleeping giant awakes
- Sovereign Bonds: Sovereigns to stay away in 2015
- Bank Capital: Basel III Bonds — Asia overcomes the bumps in the road
- Bank Capital: Asian loan provisions — a wild ride
- Hong Kong/Singapore IPOs: Different Strokes
- Equity-Linked: In repricing mode
- Leveraged Loans: Asian LBO loans evolve but suffer growing pains
- GlobalCapital Asia/Asiamoney Capital Markets Awards 2014: Full Coverage
- Wealth Management: A home away from home
- Wealth Management: DBS hopes for a perfect fit with SocGen
- Brokers Poll 2014: UBS rises to the top as China gets increasing focus
- Brokers Poll 2014: The top analysts in Asia
- Fixed Income Poll 2014: Ambitious ANZ dominates
- Corporate Governance Poll 2014: Setting the standard for corporate governance
Want full access to GlobalCapital?
If you are new to GlobalCapital or you already subscribe to some of our channels you can still easily extend your access.
Take a trial to the entire site or subscribe online to see all our capital markets news, opinion and data sets.
Don't miss out!
Bookrunners of Asia-Pac (ex-Japan) ECM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|4||Haitong Securities Ltd||476.64||5||5.20%|
Bookrunners of Asia Pacific (ex-Japan) G3 DCM
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|4||Standard Chartered Bank||2,272.92||8||0.00%|
Asian polls & awards
Asiamoney is pleased to announce the winners of the 2014 Australia Awards. After suggestions by bankers from global and domestic institutions, we weighed the most impressive deals and banks in the market last year. The results are listed below, and full write-ups of the winners will be published online and in print in late February.
Although the region witnessed the world's largest ever IPO in 2014, it was bond issues that dominated the roster of notable capital markets transactions in Asia ex-Japan. After considering a bumper selection of awards pitches from firms across the region, Asiamoney has picked its standout transactions across ECM, DCM and syndicated loans. Our thanks to all those firms that took the time to pitch. Full write-ups of each award will be published in the next Asiamoney supplement in late February.
Investors in Chinese stocks took a big hit in 2013, hurt by a volatile market that ended the year down around 7%. But things have recovered this year, and after some profitable tips from analysts at UBS, those investors decided the Swiss bank was the rightful winner of this year's Asiamoney Brokers Poll. Matthew Thomas reports.
Asia's equity market is crowded with analysts trying to impress clients with their unique views and brave calls. But few have the insight to maintain their appeal for long. The following winners of Asiamoney's 2014 Brokers Poll have proved that they have what it takes to impress their clients all year round.
There has been a mixture of stability and surprises in Asiamoney’s largest ever Fixed Income Poll, as an enterprising Australian bank makes its mark in the region. Anthony Chan reports.