Asia Pacific

Sinotrans returned to the offshore renminbi market on Tuesday with a three year transaction. It is the Chinese state owned logistics company’s second time issuing in CNH since its debut in 2011.

Beijing Automotive Group printed Rmb1.5bn ($243m) for its debut international bond on May29. The unrated automaker’s close ties to the Beijing Municipal government helped its three year issue to build a strong following with investors.

Sinotrans will meet investors for a proposed offshore renminbi bond as the borrower looks to sell its second deal in the market after making its debut in 2011.

In this round-up, this year's offshore renminbi bond volumes have already overtaken the whole of last year, RMB deposits rise in Luxembourg, the first two Singapore RQFII licences for investment firms are awarded, the first small-cap RQFII product is launched, and an Australian fund manager sets up shop in the Shanghai Free Trade Zone.

Sinotrans will be meeting with investors for a proposed offshore renminbi bond as the borrower looks to sell its second deal in the market after making its debut 2011.

The improving quality of the mortgages which back Australian covered bonds means they require less collateral than in the past to sustain a top rating, said Moody’s in a report on Wednesday. The assessment comes a few days after Fitch’s quarterly overview, which showed a sustained increase in investment mortgage lending. — But this higher risk lending is correlated to Australian house price growth which, since the year 2000, has exceeded both Spanish and Irish house price growth, according to data from The Economist.

The latest batch of regulations for the Shanghai Free Trade Zone (SFTZ), announced late last week by the People's Bank of China (PBoC) and governing the implementation of free trade accounting in the zone, indicate that the currency will operate there much like it does in the offshore market, HSBC analysts said on Monday. And while RMB will be the starting point, other currencies could follow soon.

Beijing Automotive Group (BAIC) is looking to make a debut in international bond markets as it hits the road for a potential offshore renminbi issue.

Chinese leasing company UT Capital made its debut in international bond markets on Thursday with a three year dim sum backed by a keepwell agreement from parent Haitong Securities.

Chinese leasing company UT Capital Group, a wholly owned subsidiary of Haitong Securities, launched its inaugural international bond - a three year dim sum – on Thursday.

Longfor Properties priced only the second four year CNH bond on Wednesday night, opting for the unusual tenor to spread out its maturity profile. It is also the first Chinese property issuer to come to the CNH market since February.

Bank of Toyko Mitsubishi UFJ (China) priced the first CNH issue from a non-leasing subsidiary of a Japanese financial institution on Monday. Rarity drove investors to the bond and while the issuer paid up over its dollar curve, it will use the proceeds onshore and does not intend to swap them.