China

A number of Chinese high yield borrowers that hit the dollar bond market this week have seen mixed responses to their notes in secondary trading, which bankers say is a sign of changing market sentiment and investor response.

China Mengniu Dairy Co has raised a HK$2.3bn ($296m) green loan from a group of three banks.

Standard Chartered has lost its Asia head of primary ABS, GlobalCapital has learnt.

China’s ABS market had a burst of supply this week, with five auto loan finance companies announcing or pricing deals in a bid to get ahead of possible tighter monetary conditions onshore. But the diverse nature of the originators meant competition was of little concern. Addison Gong reports.

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China Railway Construction Corp (CRCC) sold two tranches of five year bonds, one in dollars and the other in euros, to net more than $663m.

A pair of large block trades this week showed the depth of Hong Kong’s equity capital market, with more than $3bn raised by conglomerate China Evergrande Group and European food products company Danone. Jonathan Breen reports.

Guandong Haid Group Co and Shenzhen Yuto Packaging Technology Co are both making their debuts in the loan market.

SAIC-GMAC Automotive Finance Co priced a Rmb10bn ($1.56bn) auto loan ABS transaction this week, its third outing in China in 2021, switching to a simple structure comprising a senior and a subordinated tranche.

Volkswagen Finance (China) Co came to the onshore auto ABS market for the first time in 2021 with a Rmb5.97bn ($929m) transaction this week, slashing the revolving period to three months to achieve a competitive pricing.

The rapid pace of new dollar bond issuance from Chinese property companies continued from Monday into Tuesday as four more borrowers joined the fray.

One of China’s big four banks, Agricultural Bank of China, and securities house Haitong International Securities Group joined the flurry of Chinese bond deals in the offshore market this week.