China

Chinese policy banks and corporations are planning to sell renminbi bonds onshore to battle the coronavirus outbreak, using the capital markets as a source of key funding during a challenging time for the financial industry.

Asia's dollar bond market reopened on Wednesday amid volatility around the rapid spread of the novel coronavirus. But debt bankers in the region are cautiously optimistic about the state of the market.

China Bright Culture Group, an independent television producer, has got the go-ahead from Hong Kong’s stock exchange to launch its IPO.

A fall in equity markets last week reflected an automatic reaction to the possibility of a new global pandemic. But the more substantial effect of the coronavirus outbreak on equities may be reflected in economic performance, rather than the rate of contagion.

The outbreak of the novel coronavirus in China is taking its toll on Asia's capital markets. Many countries have acted quickly to contain the disease as much as possible, leaving investors, bankers and companies with capital market ambitions in limbo, with many forced to cancel travel plans and work from home. The outbreak shows no signs of abating — but it may not mar the capital markets for long.

Kangmei Pharmaceutical Co, which committed a high-profile fraud last year, has become the first company to default onshore after Chinese New Year, having failed to repay a Rmb2.4bn ($342m) bond that was put back by its holders.

Equity capital markets bankers and investors are looking get stuck into deals after a quiet period last week as markets reacted to the spread of a virulent strain of coronavirus emanating from China.

Chinese stocks plummeted on Monday morning, the first trading day after the Lunar New Year holiday. The plunge came despite measures from the central bank and securities regulator to inject liquidity and ban short selling.

In this round-up, UBS expects China’s GDP growth to drop to 3.8% in the first quarter due to the outbreak of the novel coronavirus, Hong Kong banks shut branches to limit the virus spread and Chinese regulators step in with stablising measures for financial markets.

Asian debt bankers had expected a peaceful week amid the Chinese New Year holidays, but rising concerns about the spread of the coronavirus this week led to a rush of emergency calls. Several borrowers have decided to skip or delay planned roadshow meetings in Hong Kong.

As financial markets fretted over the spread of a coronavirus outbreak in China this week, one security was in the firing line more directly than any other. Holders of the World Bank’s pandemic bond will lose principal if the disease spreads by a sufficient amount, writes Jasper Cox.

European equity capital markets’ buoyant start to the year ground to a halt this week as banks held back from doing deals over concerns about the outbreak of a deadly strain of coronavirus in China and how it may damage investor risk appetite. Losses in Asian markets, which are reopening following the Lunar New Year holiday, have compounded fears that global risk sentiment may be turning.