China

Several Chinese real estate companies, including Sunac China Holdings and Central China Real Estate, took advantage of relatively stable markets to ride the dollar issuance momentum this week. But supply pressure meant that many saw their bonds then trade under water.

Guangzhou Industrial Investment Fund Management Co locked up a $500m short-dated trade on Wednesday, attracting investors thanks to its investment grade credentials.

Deutsche Bank has appointed Beng-Hong Lee to the newly created position of head of institutional client group, China, according to an internal memo seen by GlobalCapital Asia.

Dong Yin Development, a unit of China Orient Asset Management Co, has closed its $100m three year loan with close to 10 Taiwanese and Chinese participants, said sources close to the deal.

China’s Guangzhou R&F Properties Co, the once troubled China Hongqiao Group and a local government-owned entity in Xinjiang all managed to pull off new dollar bonds on Tuesday, albeit with some difficulty.

United Overseas Bank’s subsidiary in China has printed its first bond in the country, a Rmb1bn ($159m) three year note. The Singaporean lender joins a small group of foreign financial institutions that have raised onshore funding through their China arms.

China’s cautious approach to credit default swaps (CDS) has left the market a minnow compared with other large financial systems. Paolo Danese investigates.

The International Development Association wowed on-looking SSA bankers with its debut bond issue on Tuesday, with some saying it printed in line with sister issuer World Bank (International Bank for Reconstruction and Development). The borrower opted for dollars with its first trade, but is likely to be a regular name in the currencies making up the IMF’s special drawing right basket.

German residential property company Grand City Properties brought its third corporate bond deal of 2018 to the market on Tuesday, while the return of seed company Syngenta with a jumbo multi-tranche deal neared.

Four high yield property companies, Sunac China Holdings, Central China Real Estate, Jingrui Holdings and Yanlord Land Group, raised a total of $2.05bn on Monday, with some of them focusing on price and the others on size. But irrespective of their strategy, recent heavy supply pushed their bonds lower in the secondary market.

A new group of investors is set to arrive in China's bond market as index providers prepare to include Chinese bonds in their benchmarks. But these new entrants will likely follow the path set by institutional investors in China, sticking with government bonds and short-dated paper, according to BNP Paribas.

A shareholder of Hong Kong-listed Far East Horizon raked in HK$1.8bn ($231.5m) from an overnight placement in which one investor bid for the entire trade.