China

Asia’s local currency bond markets, which received a big fillip following the region’s financial crisis in 1997, have come a long way as economies work towards insulating themselves from global volatility. But although the region’s economies are now in better shape, there is no room for complacency, writes Rashmi Kumar.

DCM bankers in Asia are gearing up for a hectic April as investors put the US interest rate hike behind them. But how will borrowers, particularly those that are lower rated, navigate the many fundraising challenges ahead? Addison Gong finds out.

The widening gap between Libor and Hibor, which reached the highest level in 10 years on Wednesday, is pushing Hong Kong and Chinese borrowers to the Hong Kong dollar-denominated loans market. But while the possibilities for opportunistic deals are plenty, bankers warn the window won’t be open for too long. Pan Yue reports.

China’s promotion of a home-grown depository receipt market is already gaining traction, even before the rules around it are published, with the big four technology giants showing their interest in returning home. But while China Depository Receipts (CDRs) will put pressure on the Hong Kong exchange, it will be some time before they pose a serious threat, writes Jonathan Breen.

GLP is lining up a three year Rmb1.2bn ($190m) bond in the interbank market next week, less than two months after the issuer sold a bond of the same size in the exchange market.

Credit Suisse has added two senior executives to its A-share research team in China as the firm prepares for an influx of funds ahead of MSCI’s A-share inclusion.

Asia’s dollar bond issuers were back in the market on Thursday after taking a pause during the US Federal Open Market Committee meeting this week.

Despite bagging Rmb4bn ($633.2m) from the Chinese asset-backed securities market on Tuesday, GAC-Sofinco Auto Finance failed to attract offshore interest and priced the deal wider than it did in its last transaction. But these upsets have not affected the carmaker’s appetite for more onshore deals.

The order book for OneSmart International Education Group’s $212m IPO on the New York Stock Exchange is well covered across the price range, said a banker at one of the leads.

Credit Suisse has promoted Joe Lai to co-head of China investment banking and capital markets (IBCM), according to a memo seen by GlobalCapital Asia.

Funding officials said green bonds had stimulated other sustainability work across their organisations at the Climate Bonds Initiative conference in London on Tuesday.

China’s regulators have floated the idea of using Chinese Depository Receipts (CDR) to attract the mainland’s new economy giants to list on the home market — a big step in the right direction if China wants to win the returning business of its foreign listed technology firms. But with rules around the issuance still in the works, focusing on small names may reap big rewards.