China

Hong Kong-listed Fosun International is set to return to the syndicated loan market to refinance a $800m deal raised two years ago, according to a banker.

China Zheshang Bank Co is out with its maiden international additional tier one, while Xinjiang Guanghui Industry Investment (Group) Co, the largest shareholder in China Grand Auto, is prepping for its offshore debut.

Shandong Yuhuang Chemical Co sealed an inaugural international bond on Monday, finding sufficient demand thanks to a conducive market backdrop, coupled with the rarity factor of being a Chinese non-property name raising funds.

The performance of the Asia bond market over the past couple of weeks, despite the macro moves elsewhere, has shown that it can drive forward independently of events in the west. With European and US political volatility waiting in the wings, Asian DCM’s self-sufficiency bodes well.

The Hong Kong Stock Exchange (HKEX) launched USDCNH options on March 20, the first currency options to trade on the exchange. Together with HKEX’s USDCNH futures contract, the new product will give investors an alternative in managing renminbi exposure.

China Evergrande Group dashed into the market last Friday, securing a $1.5bn deal across two tranches before investors shut down for the weekend.

The China Banking Regulatory Commission (CBRC) has taken a further step towards opening up the country’s financial sector, allowing foreign and joint venture banks to invest in domestic banking financial institutions.

Korea National Oil Corp (KNOC) is selling a combination of floating and fixed rate bonds, with price thoughts for a five and a 10 year released at the same level. On the high yield side, China’s Shandong Yuhuang Chemical Co is marketing its debut three year notes.

China Banking Regulatory Commission (CBRC) relaxes restrictions on foreign banks, China sees first net capital inflow in almost three years, and Goldman Sachs estimates $54bn of southbound flows to Hong Kong via Stock Connect by the end of 2017.

China got a big PR win when the IMF elevated the renminbi currency to its special drawing rights (SDR) basket, but the real market impact from that decision is yet to be felt.

This week, the PBoC follows the US Federal Reserve’s rate hike by strengthening the dollar, Korea worries THAAD will imperil renminbi swap line, and China reveals plans to create seven new Free Trade Zones (FTZs).

China Zheshang Bank has mandated firms for its international debut bond, a dollar-denominated additional tier one.