China

The upcoming Bond Connect has generated a lot of interest, but not all market participants are pleased with China’s latest attempt to entice foreign investors, with some seeing the new scheme as a confusing addition to an already complex investment landscape.

China's Ministry of Finance announced on Tuesday that it will be issuing a total of Rmb14bn ($2.06bn) of offshore renminbi treasury bonds this year, and will also sell its first dollar deal in over a decade in the second half.

China Huarong Asset Management Co is planning to raise funds through a non-public issuance of offshore preference shares.

Fantasia Holdings Group Co surprised markets last week with a 364 day bond, opting for a short-term note to circumvent delays in offshore funding approval from the Chinese regulator. At first glance, the notes appear to offer a quick solution for property companies with looming funding requirements — but borrowers should take a closer look at the many disadvantages that come with such short term deals.

Shui On Land priced its senior perpetual bond on Monday in a busy primary market in Asia ex-Japan. The $500m trade was multiple times covered, as demand for perps continues to be strong in the region.

China Traditional Chinese Medicine Holdings (CTCM) this week issued its second Panda bond, raising Rmb2bn ($294.2m) from a three year note amid difficult market conditions.

GCL-Poly Energy Holdings, which makes polysilicon and silicon wafers for solar power generation, has picked two lenders to arrange a $200m fresh money borrowing.

Shui On Development (Holding) has become the latest Asian issuer to announce a senior perpetual bond, while Brightoil Petroleum (Holdings) has hired two firms to work on an offshore outing.

People’s Bank of China (PBoC) plans new bitcoin regulations, Stock Connect southbound flows hit new highs, financing costs of renminbi bonds are cheaper offshore than onshore for the first time in 28 months.

China’s FX reserves rise for the fourth consecutive month in May, a Chinese securities regulator says the country will start allowing foreign investors to trade commodities futures onshore, and Ford Motor’s onshore financial arm issues RMB-denominated bonds.

HNA Group company Hainan Airlines Holding Co will meet investors in Hong Kong next week for an unrated senior bond denominated in dollars

China Evergrande Group is readying investors for an exchange and new money offering, as the property company looks to deleverage.