China

Chinese e-commerce start-up Pinduoduo is set to price its US listing at the top of guidance after a flurry of demand towards the end of its roadshow, according to a banker working on the deal.

Dongfeng Nissan Auto Finance enjoyed strong support from its traditional investor base — Chinese banks and onshore arms of Japanese banks — as it sold a Rmb4.5bn ($665.7m) securitization on July 19. The deal came as looser onshore liquidity gave banks more cash to buy ABS papers.

Hope Education Group launched its Hong Kong IPO on Monday. The company is hoping to raise up to HK$3.2bn ($408m), with one cornerstone investor already in the bag.

High yield issuers have steered clear of the primary Asian bond market in recent weeks, but a tap by Agile Group Holdings at the end of last week showed there is still some demand for lower rated names.

Regulators water down wealth management product (WMP) rules, Donald Trump calls China a currency manipulator as his treasury secretary ramps up the pressure, and Hong Kong Exchanges and Clearing (HKEX) pushes USDCNH options trading volumes to a new high.

Chen Gong, chief researcher at leading Chinese private think tank Anbound, tells GlobalRMB that the excessive caution of onshore authorities has made the pace of RMB internationalization far from ideal.

The research chief at the People’s Bank of China got into a rare war of words with the finance ministry, regulators push banks to lend to small businesses and buy lower-rated corporate bonds, and the securities watchdog appoints a new head for the international department.

Chinese lender ICBC partners with a German lender to finance Belt and Road projects, Tradeweb prepares to make Bond Connect trading more liquid, and China Financial Futures Exchange (CFFEX) starts consultation on introducing two-year futures for Chinese government bonds.

Investors queued up on Thursday to buy Beijing Enterprises Water Group's (BEWG) second Panda bond in two months. The deal came as property Panda issuers are held up by regulators in the pipeline, as China seeks to cool its housing market.

SF Holding Co grabbed $500m from its inaugural bond on Thursday, enticing investors with its high rating and scarcity value.

Agile Group Holdings snapped up $400m from a tap on Thursday, with investors’ response sending a strong signal to the high yield market, according to bankers.

Two Chinese technology firms listing in the US have been hotly received by investors, with both well covered since their launches earlier in the week.