China

China Huarong Asset Management Co courted investors with a four-tranche deal this week, mixing fixed and floating rate tranches.

Local government bond issuance in China had a record start in 2020, until the Covid-19 outbreak put a dent in the pace of deals. While new transactions announced by a number of provinces this week have signalled a revival, bond issuance alone may not be enough to fill a gap in governments’ funding needs. Addison Gong reports.

Chinese corporations bombarded investors with new bond options on Wednesday, allowing three issuers to raise $625m between then. Hong Kong-based asset manager ESR Cayman joined the fray in Singapore, grabbing S$225m ($161.55m).

Chongqing Rural Commercial Bank is set to become the first rural commercial bank in China to set up a wealth management subsidiary, joining 16 larger banks that have already entered the industry.

The Chinese regulator’s decision to loosen rules around follow-on offerings in the domestic market has brought a resounding vote of approval from corporations. In just four days, 46 companies have set out plans to tap the equity capital market.

One of Peking University Founder Group Co’s creditors has applied to a Chinese court for a restructuring of the company, which defaulted on a Rmb2bn ($285m) domestic bond at the end of last year.

China’s Powerlong Real Estate Holdings is returning to the international loan market to refinance some of its debt, mandating one bank to lead the deal.

Citic, Yango Group Co and Kunming Industrial Development and Investment Co were the three Chinese issuers that tapped bond investors for new dollar deals on Tuesday.

China Forestry Group, a state-owned company that cultivates and manages forest reserves in the country, has closed its $145m loan with four banks.

Australian healthcare business Genesis Care is borrowing A$1.4bn-equivalent to fund the buyout of 21st Century Oncology’s US business, giving loan investors a rare chance to put money to work at a spread north of 400bp.

China Datang Corp, a power generation company, is making its debut in the offshore loan market, seeking HK$5bn ($643m).

JP Morgan has appointed veteran bankers to lead corporate banking divisions in China and Asia Pacific and for its cash management and wholesale payments franchise.