China

Public institutions want to up their stake in RMB assets, S&P says it wants a subsidiary in Mainland China, and Fidelity warns investors of rising default risk among corporate issuers in the onshore bond market.

Beijing Enterprises Water Group (BEWG) sold two tranches of Panda bonds in the onshore interbank market on Thursday, taking home Rmb3bn ($470.1m). The issuer had hoped to bring in foreign investors through Bond Connect, but scrapped the plan in a rushed outing to the market.

Foxconn Industrial Internet held a one day bookbuild for its Rmb27.1bn ($4.24bn) A-share IPO on Thursday, eyeing the largest listing in the market in three years. The deal came with an innovative structure that includes several departures from standard flotations in China, writes Jonathan Breen.

China Merchants Bank’s Hong Kong branch managed to lock in a tight spread without sacrificing size on its $500m floating rate note on Wednesday.

Qatar National Bank (QNB) came back to the offshore renminbi market this week, just two months after its last syndicated CNH transaction. The issuer raised Rmb600m ($94m) on Wednesday by selling a three year note in Taiwan, after investors demonstrated demand for its renminbi debt.

Fosun Industrial Co has returned to the offshore market for a $550m three year senior term loan that will refinance debt taken on for an acquisition last year.

UBS has merged its corporate client solutions team for China with the Hong Kong and Taiwan unit, according to an internal memo seen by GlobalCapital Asia.

Hong Kong-listed Beijing Enterprises Clean Energy Group (BECE) has filed for a Rmb2.8bn ($439m) issuance programme in China, paving the way for the red chip’s debut in the Panda market. Should the application go through, the issuer will sell the first perpetual bond in the asset class.

Tianqi Lithium Corp and CEFC China Energy Co were thrust into the limelight this week after their existing dollar bonds plummeted in the secondary market. Addison Gong reports.

Royston Quek, head of Greater China DCM at Barclays, has left the bank after just over three years on the job.

The successes and failures of a handful of deals last week showed that floating rate notes are not just for financial credits, but can also serve corporations well — especially in times of real need.

While Bond Connect has opened up China’s booming securitization market, most international investors are only tapping deals originated by foreign auto finance companies. But this is starting to change as Chinese banks prepare to sell residential mortgage-backed securities (RMBS) through the bond link.