China

Alibaba Health Information Technology navigated concerns around its lofty valuations to pull off Hong Kong’s largest primary follow-on in five years, raising HK$10bn ($1.29bn) after boosting the size of the deal. The transaction closed with a bulging book, showing that demand for the healthcare sector is yet to peak. Jonathan Breen reports.

The resilience of China’s property market amid the Covid-19 pandemic is paying off for many of the country’s bond issuers, which have been able to reprice their secondary curves owing to strong investor support, writes Morgan Davis.

Holders of Chinese property developer Tahoe Group’s onshore bonds had to face up to two defaults from the company this week, as uncertainty looms over whether a tie-up with its peer China Vanke Co will eventually go ahead. Addison Gong reports.

Hope Education Group made its debut visit to the equity capital market this week, raising HK$1.2bn ($153m) after increasing the size of a primary share placement.

Recycling aluminium manufacturer Ye Chiu Group has returned to the loan market after a four year absence for a $150m deal to meet its refinancing needs.

CMB Financial Leasing Co returned with five year and 10 year dual-tranche bonds on Wednesday, selling the first decade bond from a Chinese FIG credit in more than a month as costs for longer-dated notes fall.

Chinese real estate borrowers swarmed the international bond market on Wednesday, raising a combined $1.05bn across four transactions.

Chinese local government financing vehicle (LGFV) Yiwu State-owned Capital Operation Co replicated its peers’ recent bond pricing success, to raise $500m with a 65bp price tightening during bookbuilding.

Everbright Water got its second attempt at a Panda bond past the finish line this week, two months after pulling a deal due to poor liquidity and climbing yields.

Agricultural Development Bank of China raised Rmb4.3bn ($618m) from its second dim sum outing this year. Thanks to strong support from Chinese banks, the offshore renminbi bond market offered the issuer clear pricing advantages over the onshore market.

Chinese property developer Tahoe Group has defaulted on a third domestic bond in 30 days, as uncertainty remains over whether a tie-up with its peer China Vanke Co would eventually go ahead.

Alibaba Health Information Technology has sealed Hong Kong’s largest primary follow-on in five years, navigating concerns over high valuations to increase the size of the deal to HK$10bn ($1.29bn).