China

Chinese investors have become increasingly focused on short-dated bonds this year. That is proving to be a boon for the country’s auto ABS originators, who are in the middle of a breakneck expansion of volumes — with plenty more still on the cards. Noah Sin reports.

China Chengtong Holdings Group priced its inaugural $500m bond on Tuesday, hitting the market as it transitions under a pilot programme for state-owned enterprises. Investors debated fair value for an unrated credit that is somewhere between a corporate and a financial, reports Morgan Davis.

LVGEM (China) Real Estate Investment Company is preparing its first international bond, mandating eight banks to work on the transaction.

Sunac China Holdings raised $1bn on Wednesday from a dual-tranche bond, despite a lot of market talk about the company this year. Bankers said the deal's success showed investors’ confidence in the company, but analysts argued the issuer left enough on the table to get demand.

Investors poured cold water on China Gas’s first outing in the Panda bond market since last October, forcing the energy issuer to pull the longer-term tranche of its Rmb1.5bn ($221.4m) deal on Thursday.

The Philippines' ministry of finance has mandated Bank of China and Standard Chartered for its upcoming Panda bond, two sources have told GlobalCapital Asia's sister publication GlobalRMB.

eHi Car Services, a Chinese auto rental provider, is selling its second international bond on Thursday, opting for a five non call three year.

High yield issuers Future Land Holdings Co and China Logistics Property raised a combined $300m from their bonds on Tuesday. But the borrowers saw different outcomes. While investors continued to be attracted to property names, making Future Land’s deal 10x covered, they were less responsive to debutant CNLP.

China Chengtong Holdings Group debuted in the debt market on Tuesday, sealing a tight $500m deal as the state-owned operating company transitions to a new entity. But its foray wasn’t without questions, as bankers and investors debated the unrated credit’s status as a corporate or a financial.

Hong Kong-listed Beijing Properties (Holdings) has approached banks for a $200m fresh money syndicated loan.

Hong Kong-listed Sunac China Holdings has set its sights on the debt market for a dual tranche dollar bond, one week after sealing a HK$4.03bn ($516.2m) top-up placement.

BMW Automotive Finance (China) Co is planning its second outing in China’s auto loan asset-backed securities market this year, with book building for the Rmb4bn ($595.7m) Bavarian Sky China 2017-2 set to start next week.