China

It is not always easy for bankers to keep up with the minutiae of their latest bonds. But one would hope they might at least know the size of these deals. Unfortunately, that is not always the case in China’s debt market.

Chinese property developer Country Garden Holdings was forced to pull a Rmb1.8bn ($281.2m) three year Panda bond this week after investors demanded a better return amid rising volatility, writes Noah Sin.

Bonds backed by standby letters of credit have fallen from grace, as tightening spreads in the dollar bond market and growing risk appetite among investors ensure that issuers can do without credit enhancement. Have SBLCs had their day in Asia? Addison Gong finds out.

Chinese state-owned Beijing Capital Group used a tried-and-tested approach for its bond return, replicating the structure of its debut deal a year ago. But its trade impressed nevertheless, priced with a negative new issue concession.

The Hong Kong Monetary Authority (HKMA) has agreed to strengthen financial markets cooperation with Switzerland's finance ministry, an effort that will encompass pushing forward China's RMB internationalisation agenda.

China Resources Land is coming back to the Panda market with a Rmb6bn ($941.6m) three year deal.

Chinese companies Xiamen Xiangyu Group Corp and Shimao Property Holdings each raised $500m on Tuesday, but saw different reactions to their bonds. While investors were keen on the former investment grade rated name, demand for the property industry is starting to see some pull back.

Indonesia’s Medco Energi Internasional and China’s GCL New Energy Holdings bagged $500m each from debt investors on Tuesday, showing the appeal of the commodities and renewable industries.

Hong Kong’s stock exchange wants to make technical — but undoubtedly important — changes to Bond Connect, putting increasing emphasis on expanding its fixed income and currencies product offering, said Charles Li, the exchange’s chief executive.

Chinese data centre operator GDS Holdings has opened a follow-on placement of its American Depository Shares (ADS), eyeing around $200m.

Onshore investors forced red chip issuer Country Garden Holdings to pull a Rmb1.8bn ($281.2m) three year bond on Tuesday. It would have been the real estate company’s first deal in the Panda market since September 2016.

Shenzhen International Holdings has raised Rmb300m ($46.9m) from a five year non put three Panda bond. The deal, which marked the issuer’s first outing in the asset class, was also the first Panda to list in the exchange market in 2018.