Asia Pacific

The US credit-rating downgrade will place more pressure on China to speed up diversification of its US$3.2 trillion foreign exchange reserves, but Beijing has little options for the time being.

Hong Kong-listed automobile parts and accessories manufacturer New Focus Auto Tech has appointed Sinopac Securities to handle its debut offshore renminbi bond in Hong Kong. The proposed deal marks both the issuer and its bookrunner’s first foray into the city’s dim sum bond market.

China’s Ministry of Finance unveiled plans to issue a larger-than-expected Rmb20 billion (US$3.1 billion) dim sum bond in Hong Kong; the offering is more than double the size of its previous one and is by far the biggest sale in the fast-growing offshore renminbi market.

China Eastern Airlines Corp made its debut in the dim sum bond market this week, raising Rmb2.5bn ($388.2m) from a heavily-demanded deal, only two weeks after it became one of several companies to hold back a new issue.

China’s Ministry of Finance gave the offshore renminbi bond market a shot in the arm this week, revealing plans to raise Rmb20bn ($3.11bn).

The Republic of the Philippines is planning a bumper bond offering, raising as much as $3bn from a mix of global peso bonds and dollar-denominated debt — underlining the importance of synthetic peso bonds to the country’s funding strategy.

Westpac Banking Corp became the latest Australian bank to turn to Japanese investors for funding this week, raising ¥100bn ($1.26bn) from a deal that bankers hope will encourage Australia’s big four banks to return to the market soon.

China Eastern Airlines Corp made its debut in the dim sum bond market this week, raising Rmb2.5bn ($388.2m) from a heavily-demanded deal only two weeks after it became one of several companies to hold back a new issue.

Hong Kong’s first real estate investment trust, Link REIT, is launching a seven-year fixed rate note, hoping to raise HK$510 million. BOC(HK) is also look to tap the market with a renminbi CD.

In a move to prevent hot money flooding into China the country’s central bank will regulate applications from mainland companies to remit their renminbi funds raised overseas for purposes other than trade financing. Analysts expect such restrictions will slow offshore renminbi funding.