China

Tewoo Group Co, also known as Tianjin Material & Equipment Group Corporation, is planning a return to the offshore bond market, having picked two firms to arrange roadshow next week.

Chinese companies have aggressively expanded into Europe this year, snapping up businesses and expanding their footprint. While loans are still the go-to funding tool and often get the bulk of the refinancing, as this week’s China National Chemical Corp transaction shows, the bridge-to bond route is becoming more popular. Morgan Davis and Addison Gong report.

China put the brakes on capital outflows again this week, taking aim at both large and small scale transactions amid a falling renminbi. Market participants are digesting the impact of the new curbs, as yet unconfirmed, but some thought that they could weed out dodgy deals and raise the quality of M&A financing. John Loh and Shruti Chaturvedi report.

China’s Shougang Corp and ABC International were among the mix of five bond offerings by Asian issuers on Wednesday in the offshore bond market.

Hong Kong and overseas investors will be exempted from capital gains tax when they trade A-shares via the upcoming Shenzhen-HK Stock Connect, in-line with what is already in place for Shanghai Connect.

People’s Bank of China is returning to its old habits of sending out window guidance to banks in yet another attempt to stem capital outflows, with the latest measures targeting cross-border M&A and offshore RMB loans.

Ronshine China Holdings started taking orders for its inaugural international bond on Thursday. The deal was announced with substantial anchor orders following the roadshow, said bankers.

Panda and dim sum bonds are set to end 2016 with different outcomes with the former gaining plenty of traction as the latter suffers from a dire lack of appetite, according to GlobalRMB data.

State Power Investment Corp (SPIC) fired the starting pistol in Asia’s dollar bond market this week, selling a $1.2bn dual tranche offering on Tuesday. The state-owned enterprise played off its strong name and high rating, and ended up paying little by way of new issue premium, even though the market was volatile.

Asia’s debt capital markets opened with a bang on Wednesday with five issuers fighting for attention. Investors have plenty of choice including a euro deal and a trio of dollar offerings from Chinese FIG and corporate names.

Loncin’s debut international bond squeaked into the quiet dim sum market on Monday, raising Rmb800m ($116m). However, the outlook for offshore renminbi debt remains poor as issuers and investors stay away.

Chow Sang Sang Holdings International, the Hong Kong jewellery retailer, is expanding its securities business to onshore China, signing a joint venture with several Mainland partners.