China

China-based companies topped the charts for IPOs and follow-on offerings in US Depositary Receipts (DRs) in 2016, accounting for more than half of all issuance in the format.

The Hong Kong Monetary Authority (HKMA) released one of the most disappointing sets of RMB data last week when it revealed that the city’s renminbi deposits had plunged 12.9% in December 2016 to Rmb546.7bn ($79.5bn).

Welcome back to those of you outside of China and Taiwan. While we were on a break, Hong Kong revealed the largest single month drop in CNH deposits, China experienced $203bn of outflows in December 2016, and Mega Bank advises against clients holding long RMB positions.

Tsinghua Unigroup, part of Chinese state-owned Tsinghua Holdings, is considering increasing the size of its $300m debut syndicated loan after commitments of nearly double the amount poured in.

China Opportunity International is pursuing a $620m secured note, backed by a basket of onshore renminbi denominated bonds.

In this round-up, People’s Bank of China defends its use of foreign exchange (FX) reserves to preserve stability in the currency markets, two new entities are added to the RMB qualified institutional investors (RQFII) programme, and Hungary’s central bank signs an agreement to expand access to the Chinese capital markets. Plus, a recap of our coverage this week.

ANZ names new Oz loan syndications head — SBI Capital Markets, CIMB India lose ECM bankers — JP Morgan hires for China research

Investors had to get to grips with the dynamics of Mainland water supply this week as China Water Affairs Group made a $300m debut on Wednesday.

China’s financial markets have undergone a huge transformation over the past few years with a series of reforms aimed at improving access for foreign investors and liberalising its exchange rate mechanism. GlobalRMB reached out to several industry bodies to get a sense of initiatives they are working on and where China’s reform priorities lie this year.

Renminbi internationalisation struggled to make progress in 2016 with RMB payments declining by close to 30%, according to Swift.

Fujian Zhanglong Group Co raised $150m from a tap on Tuesday, in a deal driven by reverse enquiry and anchored by indications of interest ahead of launch.

The Irish regulators are looking to facilitate European investments into China, following the award of an RMB qualified foreign institutional investor (RQFII) quota to Ireland as well as prepping for the launch of the China-Hong Kong ETF Connect.