China

Xinyi Energy Holding, a Chinese solar power producer, has hit the road to begin drumming up interest in its up to HK$4.4bn ($564m) IPO, according to a term sheet seen by GlobalCapital Asia.

Index provider MSCI has confirmed, following this month's semi-annual review, that it will raise the inclusion factor of Chinese A-shares from 5% to 10%, effectively increasing the weight of A-shares in its MSCI Emerging Market Index from 0.72% to 1.46%.

Shandong-based coal miner Yankuang Group Co was able to price a $500m tap almost 30bp inside where the existing notes were trading on Thursday, while E-House (China) Enterprise Holdings, a real estate services firm, also added $100m to an outstanding bond.

In this round up, China-US trade tension peaked with US president Donald Trump’s market-moving tweet, Chinese FX reserves dipped in April and the amount of Qualified Foreign Institutional Investors (QFII) quotas approved in April surpassed that of all of last year.

The US was set to raise tariffs on $200bn of Chinese goods, as GlobalCapital went to press, after talks between the two economic powers appeared to break down. Few people predicted it, most having prematurely stopped worrying about the US-China trade war and its impact on markets.

Global equity markets suffered their worst days of the year this week after an apparent breakdown in trade talks between the US and China, causing investors to sell and volatility to spike and possibly wrecking equity issuance plans, write Sam Kerr and Ross Lancaster.

A number of Chinese real estate companies have returned to the offshore loan market after struggling to raise money in the second half of 2018. Although some bankers said they are more willing to lend than they were last year, they are also complaining about the size of some deals. Pan Yue reports.

US president Donald Trump caused turmoil in global financial markets this week, after threatening to ramp up tariffs on Chinese goods. But although Trump stirred up trouble, Chinese start-up Luckin Coffee was not put off from brewing a US IPO. With heavy-hitting institutional investors already piling in to the offering, the company looks on track to raise more than half a billion dollars. Jonathan Breen reports.

Casino operator MGM China Holdings priced a larger-than-expected $1.5bn 144A/Reg S deal this week, and both tranches rallied in the secondary market despite a broader risk-off sentiment.

The China Banking and Insurance Regulatory Commission is planning to impose tighter rules on the recognition of non-performing loans (NPLs), forcing banks to provide more transparent data about the health of their assets.

CCB Financial Leasing Corp sold a $700m dual-tranche transaction on Wednesday, without paying a new issue premium on either tranche, and pushing the pricing on the $200m 10 year some 10bp inside its curve.

Chinese online tutorial platform GSX Techedu is seeking approval for an American Depository Shares (ADS) listing on Nasdaq, as fellow Chinese company DouYu waits for more stable market conditions before commencing pre-marketing for its own $500m ADS offering.