Banks

A revolution is occurring in the Schuldschein market. This sedate and sober instrument has shaken its fusty reputation and transformed into a bustling hotbed of technological progress. Seven digital platforms sprang up in 2018, each declaring a grand ambition to drive efficiency. But with platforms jockeying for position, under the eye of the German regulator, some question the rate of change and the authenticity of some agents of it.

It has only been four years, but the European bond markets have become attached to the kindly hand of Mother ECB. Quantitative easing has been like an electric motor on the market’s bicycle — in 2019, it will have to go back to doing all the pedalling itself. Can the market do it without falling off, when the road ahead is so bumpy?

Bank of China Group Investment, a Hong Kong-based wholly owned subsidiary of Bank of China, will price a Rmb2bn ($290m) three year note on Tuesday. But some rivals have raised questions about whether the deal is a true funding exercise.

Zhongyu Gas Holding has returned to the offshore loan market for its second borrowing this year, offering a $250m three year facility.

Shanghai Henlius Biotech has joined a growing pipeline of biotechnology firms planning to float in Hong Kong. It wants to list in the first quarter of 2019, said a banker working on the transaction.

Shanghai Junshi Biosciences has raised HK$3.08bn ($394.2m) after pricing its IPO at the bottom of the range, according to a banker on the deal.

Bank of Jinzhou is planning to raise HK$8.22bn ($1.05bn) through a private placement of H-shares, according to a filing with the Hong Kong Stock Exchange.

Citi is pulling out of its China securities joint venture. It gave its partner notice at the end of last week.

Equate Group, the Kuwaiti petrochemical producer, has amended and extended its $1.9bn term loan and $1bn revolving credit facility, achieving a reduction in pricing and strong demand from international lenders.

Xinyi Energy Group (XYE) has cancelled its potential HK$4.5bn ($575.8m) IPO in response to choppy markets. It was planning to debut on the Hong Kong Stock Exchange on December 21.

Zhengzhou Metro Group became the latest Chinese local government financing vehicle (LGFV) to price a dollar bond, turning to the market on the same day two issuers in Chengdu and Yichang also raised funds.

Fantasia Holdings Group Co locked up a final dollar deal of the year on Thursday, but paid a generous 15% yield to secure anchor orders for the transaction.