Asia Pacific

The rise in China’s new home prices in July shows the property bubble still going strong and preventing the PBOC from easing

Tata Power raised Rs15bn ($269m) last week from a rare corporate hybrid issue in the rupee market, pulling off the longest maturity ever achieved for an Indian corporation in the domestic market.

Singapore’s domestic bond market heated up last week as three issuers raised a combined S$1bn ($798.5m) and attracted around S$14.5bn of demand from investors, underscoring the depth and liquidity of the city-state’s debt market, which remains busy despite the summer break.

The Republic of Indonesia aims to raise $7.8bn from both foreign and domestic investors by the end of the year to fund its budget deficit. It is considering issuing around $2bn of that from both the Samurai and global sukuk markets, said a government official.

Banks will continue to spearhead dim sum issuance for the rest of the year while corporates take a breather as yields continue to converge in the onshore and offshore renminbi markets.

Malaysian mobile phone operator Celcom Axiata raised MR5bn ($1.6bn) from selling Islamic bonds this week, closing the biggest-ever sukuk with a credit rating in the country’s history.

The relative value of offshore RMB bonds compared to both onshore and US dollar bonds will remain unattractive as downward pressure on Chinese government bonds’ yield curves escalates, says BoA-Merrill.

Encouraging noises from policymakers have given hopes to investors; Asia is still favorite among emerging markets

China’s insurers could have up to US$140 billion to invest into the offshore renminbi (CNH) market if a relaxation of investment rules is expanded to include more foreign assets.

India’s inflation surprisingly fell in July but with industrial output slowing some analysts fear the country is entering stagflation

CNH bonds hold appeal for central banks looking for greater renminbi exposure, but broader participation depends on liquidity and a strong pipeline of state-backed bonds.