China

As the Chinese offshore bond pipeline continues to build, it is inevitable that issuers will increasingly use anchor order support to get their deals past the finish line. But the reliability of this approach was thrown into question this week, writes Addison Gong.

WuXi AppTec’s Hong Kong IPO is set to be yet another test case of investor appetite for biotechnology names, as the company kicked off its chunky HK$7.5bn ($958m) flotation this week. With all eyes on the offering, its performance in both primary and secondary can have ramifications for other listing hopefuls in the city, writes Christie Ou.

Shandong Iron & Steel Group, Excellence Commercial Properties and Sunshine 100 China Holdings completed their offshore fundraising exercises on Wednesday after announcing their deals with final price guidance.

German carmaker and Panda regular Daimler issued a Rmb4bn ($576m) two tranche private placement this week, ending its Panda issuance for 2018. The issuer kept its focus on a shorter-dated tranche, which made up the bulk of the offer.

Baidu-backed video streaming platform iQiyi opened bookbuilding for a $500m convertible bond on Wednesday after US markets closed.

BMW Automotive Finance returned to China's ABS market this week, raising Rmb4.5bn ($575m) from its second deal of the year. But the auto lender tweaked the structure this time, adding a revolving portion.

After testing the market with a single tranche Rmb1.94bn ($284m) note in August, carmaker Geely will launch a bigger deal with a more complex structure.

Beijing Infrastructure Investment Co showed it is still possible for a Chinese local government financing vehicle (LGFV) to pay little new issue premium for a bond, but its move came at the expense of its order book dropping by a third.

Shanghai Junshi Biosciences has kicked off pre-deal investor education for its Hong Kong listing.

Some equity investors are hoping for a surprise gift before year-end if Donald Trump strikes a deal with Chinese president Xi Jinping at the G-20 summit in Buenos Aires to end trade hostility between the two nations, but they're clutching at straws.

The Asian equity-linked market had a rare treat last week when Country Garden Holdings sold a convertible bond using a call spread feature. Its success has ignited hopes of more such deals, but ECM bankers and issuers should be wary of mixing dreams with reality.

Two Chinese local government financing vehicles (LGFVs) had contrasting responses to their dollar bonds on Monday. While a borrower from Tianjin pulled off its deal with enough anchor support, a Gansu province issuer faced some hiccups around pricing.