China

China Mengniu Dairy has tapped two banks for separate loans denominated in dollars and Hong Kong dollars to fund its acquisition of China Modern Dairy Holdings.

The Greater China debt market started the week in full force, with Bank of Communications, ICBC and Road King Infrastructure opening books on Monday.

China’s Huawei Investment & Holding Co is gauging investor appetite for its third international bond, having picked five banks to work on the transaction.

The growth of renminbi trade has stalled, but it has forced a turning point to how corporates use the Chinese currency.

Valentine’s Day celebrations may be upon us, but the onshore RMB is not feeling much love, as the fix and spot rates against the dollar start on a weak note. In other news, FX spending by PBoC grew by over $100bn in 2016 and the Hong Kong stock market is soaring on the back of heightened inflows from Mainland investors.

The opening of the China interbank bond market (CIBM) has allowed more foreign investors to dip their toes into the market. But despite the reforms and the increasing likelihood of a bond inclusion in global indices, global investors are still wary of the market.

Future Land Development Holdings’ new three year notes garnered massive investor interest for a $350m capped deal, as Chinese property names benefit from market support.

In this round-up, the offshore RMB (CNH) nearly eliminates its spread with the onshore RMB, a Standard Chartered index on RMB internationalisation ends 2016 poorly, and the Hong Kong Exchange (HKEX) sees new records set in RMB futures contracts in January. Plus, a recap of our stories.

While all eyes are focused on the Brexit process, the Bank of England (BoE) has quietly begun publishing numbers that support London's claim to be the leading RMB hubs in Europe. Meanwhile, market participants continue debate the relevance of the upcoming China-London Connect scheme.

China Grand Automotive is in the market for a $591m equivalent dual currency syndicated loan. The deal comes less than two months after it raised funds from a bond issue.

China Singyes Solar Technologies Holdings sealed its debut dollar bond on Wednesday after pricing was tightened by an impressive 55bp. Strong market conditions, a familiar name and the deal’s structure played well together for the unrated trade, reckon market participants.

Cornerstone investors taking up huge chunks of Hong Kong IPOs have caused much controversy in recent years, but that looks set to change. China’s foreign exchange regulator has provided a new route for investing in the city’s listings, which is expected to diversify the pool of potential cornerstones beyond the typical state-owned enterprises, and friends and family investors. Jonathan Breen reports.