China

The securitization market generates a mix of excitement and confusion, offering investors a novel way to boost their returns, diversify risks and — not very bold conjecture here — sometimes lose lots of money without quite understanding why.

China’s Bank of Communications came out with a $1.95bn-equivalent three-tranche deal on Thursday. It opted for a bigger dollar portion and a slimmer offshore renminbi (CNH) bond, compared with its last outing.

Three Chinese real estate companies raised $850m between them from the dollar debt market on Wednesday.

The appeal of China’s Star market shows no sign of waning, with seven issuers already pricing their IPOs on the board this month and more companies joining the pipeline.

Guotai Junan International Holdings is planning a rights issue of new shares as it looks to raise up to HK$3.75bn ($482.3m).

The overwhelming supply of international bonds from Asia continued on Tuesday, as issuers dashed to raise dollars, and in one case, sterling. But not every borrower was able to cross the finish line.

The Carlyle Group, a US-based multinational private equity firm, offloaded its position in China Literature this week through a HK$1.53bn ($196m) overnight block trade.

China’s government debt last year grew at its fastest pace annually since 2009, while central and local government borrowing shows no signs of slowing.

Sinopharm Holding (China) Finance Leasing Co is seeking a $215m-equivalent loan.

Anta Sports Products, a Chinese sportswear manufacturer and retailer, had to navigate a number of roadblocks to print a €1bn zero coupon convertible bond to refinance loans in the currency.

The State Administration of Foreign Exchange (Safe) will allow foreign investors to participate directly in the interbank FX derivatives market so they can hedge their foreign exchange risks from investing in onshore renminbi bonds, according to a Monday notice.

The US and China’s signing of the phase one agreement on trade this week will finally put almost two years of battling and tit-for-tat tariff retaliation behind the countries. However, while the truce may pave the way for more market stability and a boost in investor sentiment, it spells trouble for the Chinese offshore loan market.