China

In this round-up, the Hong Kong Stock Exchange saw surges in trading of offshore RMB (CNH) futures, BMO became the first Canadian bank to become market maker for CAD-RMB direct trading, and the country of Djibouti is launching a Silk Road Bank. Plus a recap of GlobalRMB’s top stories this week.

Changsha Pilot Investment Holdings Co is readying its international debut, having mandated two firms to arrange roadshows next week.

China Energy Reserve and Chemicals Group and CEFC China Energy Company managed to drum up investor interest for their respective dollar bonds on Thursday despite a choppy market backdrop.

With the RMB hitting new lows against the dollar following the US elections, the move away from offshore RMB (CNH) deposits is likely to continue, if not accelerate. GlobalRMB is introducing a new historical chart tracking the level of CNH deposits across Hong Kong, Macau, Singapore, South Korea and the UK.

Chinese biopharmaceutical company BeiGene has net $200m from a follow-on public offering of American Depositary Shares (ADSs).

JP Morgan is paying a chunky $264m to the US authorities to settle charges that it won business from clients and government officials in Asia Pacific by giving jobs and internships to their relatives and friends.

The transition to a new IMF special drawing rights (SDR) basket, inclusive of the renminbi, is just the starting point for efforts by China and the IMF to see the basket take up a greater role as a global liquidity tool.

There’s a price to pay for market uncertainty, as Asian dollar bond issuers found out this week. While some had to offer hefty premiums to entice investors, Country Garden was forced to pull its deal on Wednesday following lukewarm demand. As investors turn cautious, market participants say that short-dated paper and juicy yields will be key for the next few weeks. Morgan Davis reports.

An unexpected change to China’s education policies that threatens to upend the business model of private schools has put a question mark over some of their Hong Kong IPOs.

Fosun International successfully priced a tap of its existing 2023s on Wednesday, paying a premium to the outstanding deal in line with new market conditions.

Unrated CEFC China Energy Company and China Energy Reserve and Chemicals Group are wooing investors for their respective dollar-denominated notes, with the former making its debut and the latter returning for a second time this year.

It has been the year where Chinese banks went from challenger to champion in Asian investment banking. Growing almost as fast have been the complaints from international rivals. Bankers at global firms may not like the methods but Chinese banks are liquid and they are here to stay: it’s time to adapt.