China

Chinese privately-owned borrowers should be prepared to cough up higher margins and offer tighter covenants for their syndicated fundraisings as trade tensions between the Mainland and the US escalate.

China is about to find out if it can build a bridge to European liquidity, with Qingdao Haier set to close the first IPO of D-shares in Frankfurt. The debut of the China Europe International Exchange (Ceinex), along with another much talked about equity link to London, will be a key test of whether Chinese issuers can tap new sources of funding abroad. John Loh reports.

Investment managers have plenty of work to do to shift global investors’ sentiment on China, Ashley Dale, head of business development at Harvest Global Investments (HGI), tells GlobalRMB.

Red chip company China Power successfully raised Rmb2bn ($288m) this week, the second Panda deal in the energy sector this year.

China may have returned to the dollar bond market at a difficult point last week, but the sovereign still has a way to go before its notes become a real benchmark for the country’s debt issuers.

Chinese state-owned enterprise (SOE) Shandong Gold Group Co achieved size with its three year outing on Monday, raising $600m. Another government-linked entity in the province, Weifang Urban Construction and Development Investment Group Co, debuted in the offshore market with a $250m trade.

Global Logistics Properties, the Singapore-headquartered logistics facilities provider that is the second most frequent issuer of Panda bonds, snapped up another Rmb1.2bn ($170m) in its October outing.

The China Securities Regulatory Commission has cut in half the lock-up period for converting global depository receipts (GDRs) into A-shares for the London-Shanghai Stock Connect, expected to launch later this year.

China's Jiayuan International Group made any unusual move by coming to the bond market on Friday last week, for the refinancing of a November maturity.

Innovent Biologics launched its Hong Kong IPO on Monday to raise HK$3.3bn ($422.2m), with over 60% of the shares already sold to a large contingent of cornerstone investors — many of them double-dippers.

The People’s Republic of China, acting through its Ministry of Finance (MoF), priced a $3bn return to the international bond market, pushing out its maturity profile to 30 years. But a weaker backdrop meant that the order book was not as strong as its dollar trade last year.

Qingdao Haier has set final price guidance for its D-share IPO. The Chinese white goods maker is eyeing proceeds of up to €397.5m from a smaller than expected debut for the asset class.