China

China Traditional Chinese Medicine Holdings is returning to the Panda bond market for Rmb2bn ($294.2m) three year notes, according to documents filed with Shanghai Clearing House.

Chinese property developers are increasingly looking at 364 day bonds as a way to sidestep approval delays from the National Development and Reform Commission, after Fantasia Holdings Group Co sold a $350m public note this week. Short-term bonds offer a quick fix for borrowers, but there are concerns over whether this is sustainable in the longer run, writes Addison Gong.

Optoelectronic display manufacturer Tunghsu Group Co wrapped up its inaugural offshore deal on Wednesday, finding support from domestic and international accounts, despite operating in a relatively unfamiliar industry.

Chinese issuers Far East Horizon and Power Construction Corporation of China sealed perpetual non-call five year deals on Wednesday, feeding investor appetite for yield from high quality names.

The combination of One Belt One Road (OBOR) and Bond Connect will allow the renminbi to be used more widely as an investment and reserve currency, presenting a breakthrough for RMBi, said experts at the Hong Kong Exchange’s RMB fixed income and currency conference on Thursday.

Bond Connect will only provide northbound trading for the next few years, Charles Li, chief executive of the Hong Kong Exchange, has said.

Chinese high yield company Hilong Holding has mandated banks for a dollar bond.

Chinese developer Fantasia Holdings Group Co wrapped up an unrated short-term note on Tuesday, snapping up $350m for refinancing. Bonds with maturities of less than a year are increasingly being considered by Mainland issuers, given the barriers in getting regulatory approval to go offshore for fundraising.

Chinese property developer Kaisa Group Holdings is looking to launch an exchange offer, swapping a series of variable rate senior bonds for new fixed rate notes.

HSBC and Morgan Stanley have adjusted their forecasts for the onshore renminbi (CNY), projecting a stronger-than-expected currency by the end of 2017. Analysts say the RMB’s strength could prompt China to allow for greater two-way volatility and further open its domestic market.

China Everbright Bank’s Hong Kong branch grabbed $500m on Tuesday from its three year floating rate note offering, riding on the success of its past transactions, said bankers.

China Construction Bank International seized a tightly priced $600m five year deal on Tuesday, offering investors something different to an increasingly common floating rate note.