Asia Pacific

China tested the limits of reform in its stock market this week with disastrous consequences. Equity markets fell globally after China heaved yet more volatility on investors, and mainland stocks saw their worst ever start to the year. The turmoil caught equity capital market bankers off guard, but panic has not set in yet, writes John Loh.

Loans bankers have traded in cautious optimism for realism this year, as weaker currencies and loosening monetary conditions across Asia are expected to weigh on demand for foreign currency debt. Even silver linings such as a potential pick-up in loan activity from India and increased outbound M&A will provide little respite, writes Shruti Chaturvedi.

The heavily oversubscribed books for the year’s first three Asia ex-Japan bond deals should not be taken as a sign that issuers will have an easy time in 2016. With macro concerns linked to China once again rearing their ugly head, market participants are predicting a tough year ahead. Rev Hui reports.

Allocations are out for a $145m loan backing the Blackstone Group’s acquisition of Serco’s business process outsourcing assets in India.

India’s stock market regulator has published consultation papers on real estate and infrastructure investment trusts while Singapore’s financial regulatory authority has firmed up its rules for real estate investment trusts (Reits).

China has taken its first step towards fulfilling its environmental ambitions, unveiling guidelines for issuing green bonds in its interbank bond market.

Three months after South Korea became fully double-A rated for the first time, the sovereign received another boost when Moody’s hiked its rating by one notch to Aa2 in December.

Korea Development Bank (KDB) snagged tight pricing for its $1.5bn dual-tranche bond, completing one of the first deals of the year in Asia. Some accounts stayed away citing expensive pricing and geopolitical concerns, but investors still thronged to the credit, viewing it as a defensive play amid high volatility.

Barclays is preparing to let go of investment banking staff in Asia as the UK lender continues to wind down its presence in non-core markets.

Two senior bankers from Royal Bank of Scotland’s defunct Asian loans division have moved to Banco Santander.

While all eyes are on China and turmoil in the mainland equity markets, our columnist turns his gaze to Indonesia where once again the government is attempting to privatise state-owned companies.

Hungary will meet investors in Hong Kong and Singapore as it prepares ground to issue the first ever sovereign dim sum bond from the CEEMEA region.