Asia Pacific

The country is looking to dim sum bonds as an alternative to fund its capital-hungry infrastructure sector. It’s hoping that quasi-sovereign backing will attract investors to local issuers with weaker credit standings.

Korea Finance Corp is now working on the documentation for a ¥30bn ($382.4m) Samurai bond that it wants to sell in September, but has still not mandated banks to lead the deal. It plans to send out a request for proposals by the end of the month.

The nation’s stringent 75% loan-to-deposit ratio not only puts undue stress on banks’ future earning potential, it diminishes their competitiveness in a burgeoning lending market.

Hopes of an economic recovery in China were crushed by the latest set of disappointing new bank loans and trade data

Central banks in Africa will add more renminbi into their foreign reserves in recognition of China’s sound economic fundamentals and as Sino-Africa trade continues to grow, say experts.

China’s inflation figures for July failed to shed light on whether the central bank can go ahead and ease monetary policy further

Industrial and Commercial Bank of China made its debut in the offshore renminbi debt market this week, raising Rmb1bn ($157m) from a deal that priced inside the outstanding bonds of its rivals, including Bank of China.

Singapore’s DBS Bank turned to its domestic investor base for capital for the second time this year, raising S$1bn ($806m) from the sale of lower tier two subordinated debt.

Dim sum bonds with long tenors should benefit from the convergence between China’s onshore and offshore markets as it relaxes the constraints surrounding its capital account, says HSBC.

The impending launch of China’s first domestic bond-linked exchange-traded funds is the latest step by regulators to develop the bond market and diversify participation away from state-backed banks.

July inflation data will tell whether China can go ahead with stimulating its economy or it must stop and risk a hard landing