China

As the perceived European political risk reduced following the results of the first round of French elections, Asian debt markets opened on Monday to a deal from India's HPCL-Mittal Energy (HMEL).

With the world’s largest asset manager saying it backs the inclusion of A-shares in MSCI indices, the result now looks inevitable. However, the result is likely to be high on symbolism and little else and highlights the challenge for firms as they balance the demand for China exposure with the need to keep their integrity intact.

In this round-up of news you may have missed over the weekend, People’s Bank of China (PBoC) plans to roll out more SDR-denominated products, State Administration of Foreign Exchange (Safe) says capital flows stabilised in the first quarter of 2017, and JP Morgan is named top foreign asset manager for 2016.

BlackRock has backed MSCI to include A-shares in its benchmark index, a former State Administration of Foreign Exchange (Safe) official says China should open its onshore renminbi market, and Standard Chartered says capital outflows reach a new low in March.

Want Want China Finance and China SCE Property sold $500m and $300m of notes respectively on Thursday, as both hit the market before the expected rush investment grade names next week.

China Merchants Port Holdings (CMP) successfully raised Rmb2.5bn ($363.4m) from a five year Panda bond on the interbank market on Thursday. The company is presenting the trade as a Silk Road bond, even though all of the proceeds will be used onshore.

China Huarong Asset Management Co on Thursday concluded a $3.4bn-equivalent six-tranche offering featuring US dollars and Singapore dollars. The transaction broke new ground for the issuer, and the company is one step closer in narrowing the gap between its curve and that of some of its Chinese peers.

People’s Bank of China (PBoC) relaxed capital controls for the first time since 2015 last week, scrapping an order introduced in January. Experts say the move is an attempt to rebuild foreign investors’ confidence, and may even signal a return to full blown renminbi internationalisation.

Chinese property developer Greenland Holdings is accessing the loan market through a subsidiary called Gluon Xima International for a $250m three year bullet.

Fosun International has opened a tap of its March-issued $800m 5.25% 2022s, following reverse inquiry.

Asia’s bond markets are preparing for record China offshore issuance this year, driven by the ambitious funding plans of city commercial banks. Bankers expect at least $20bn of bank capital transactions to hit screens with pricing likely to be tight thanks to support from onshore investors.

Beijing this week picked five commercial banks as the second batch of a pilot programme that allows the issuance of asset-backed securities using their non-performing loans (NPLs).