China

SAIC-GMAC, one of the first issuers in China’s auto loan ABS market, returned with a Rmb10bn ($1.49bn) three-tranche transaction this week.

Fantasia Holdings, a property developer in China, priced a Rmb1bn ($149m) 1.5 year dim sum bond on Tuesday. But the issuer had to pay 11.875% to get the deal done.

The Shanghai Stock Exchange (SSE) published the official rules for the new tech board at the end of last week. The exchange said the tech board will allow unprofitable companies to list, prevent small retail investors from participating directly and loosen lock-up requirements for key investors.

In this round-up, the US trade representative’s office announced the delay of a China tariff increase, the Shanghai Stock Exchange released detailed rules for its tech board and China’s annual planning session gets set to address issues including economic growth targets and foreign market access

China has set the official rules for its Nasdaq-style tech board. It is undoubtedly a step forward for China’s equity capital market, but it should not be a surprise if a bubble forms soon after it launches.

China’s Guotai Junan Securities Co double-dipped in the international market this week, raising $500m from the sale of a three year bullet on Monday before launching a three year euro-denominated trade on Tuesday to raise an additional €225m.

The brief default of a dollar bond by local government financing vehicle (LGFV) Qinghai Provincial Investment Group last week caused next to no impact in the China offshore bond market. That is a bad sign.

China Development Bank Financial Leasing Co (CDBL) has raised $700m from the bond market, leaning on anchor orders to squeeze a tight final price.

Semiconductor Manufacturing International Corporation (SMIC), a red-chip issuer, sealed a three year Rmb1.5bn Panda bond at the end of last week.

China real estate companies Zhenro Properties Group and China Evergrande Group started the new month with fresh dollar deals at the end of last week, marking Zhenro’s fourth trade of the year and Evergrande’s second.

China State Construction International Holdings returned to the dollar bond market, adopting an unusual structure that raised many questions even after the $500m credit-enhanced deal was priced.

Chinese home appliance company Midea Group is seeking banks for a $650m loan to refinance its acquisition of Toshiba’s home appliance business from 2016.