China

Beijing Infrastructure Investment, a Chinese local government finance vehicle (LGFV), returned to the international bond market on Tuesday, raising $200m at a tight price.

China’s Wolong Electric Group is tapping the offshore market for the first time, seeking a €150m loan through sole lead bank Standard Chartered.

China’s overnight interbank collateral repo rate fell to a five year low late on July 4, indicating ultra-flush liquidity in the interbank market. But the city-level commercial banks and private enterprises that are in dire need of the liquidity remain thirsty.

In this round-up, 25 companies will be listed on the Shanghai Stock Exchange’s new tech board on July 22, China’s FX reserves climbed to a one year high and the China Securities Regulatory Commission (CSRC) is set to give permission to domestically funded securities houses after a 10-year hiatus.

Debt-laden Kangde Xin Composite Material Group is facing punishment from a Chinese regulator for inventing Rmb11.9bn ($1.73bn) of profits on its book over the past four years despite being loss-making, and could be forced to exit the A-share market.

Hong Kong-listed Jiayuan International Group has wrapped up an exchange-plus-new money offering worth $225m.

Hong Kong-listed pharmaceuticals company United Laboratories International Holdings is tapping the loan market for a HK$1bn ($128m) deal, almost six years after cancelling a smaller facility.

Zhenro Properties Group has wrapped up its debut offshore borrowing at $120m-equivalent with commitments from five lenders.

Shanghai Henlius Biotech has resubmitted its application to list on the Hong Kong Stock Exchange with an IPO worth around $500m.

China’s CIMC Vehicles, a trailer maker, has priced its float of 265m shares on the Hong Kong Stock Exchange at the bottom of the range, raising HK$1.69bn ($217.1m).

In this round-up, Chinese securities regulators allow their Hong Kong counterpart to access audit papers of Hong Kong-listed mainland companies, Chinese premier Li Keqiang vowed to lift the 51% foreign ownership cap on Chinese financial firms sooner than planned, and free-trade zones (FTZs) receive more autonomy in trying out new policies.

In this round-up, US and China will resume trade talks next week, JP Morgan and Morgan Stanley near 51% stakes in their Chinese joint ventures (JVs), and China’s foreign minister offered a strong-worded rebuttal to the UK’s stand on Hong Kong protests.