China

Weak Chinese manufacturing data and a stronger yuan have steepened the CNY rates curve. RRR cut bets have helped the 2-year sector outperform. Sources see scope for further steepening across the 2s/10s slope, writes Deirdre Yeung of Total Derivatives.

Everbright Securities kicked off pre-deal investor education on Monday for its over $1bn IPO in Hong Kong, with the recent recovery in markets expected to bolster demand for the transaction.

A single Chinese lender will help fund a take private of Hong Kong-listed Peak Sport Products, according to an exchange filing.

Shanghai Fosun Pharmaceutical Group has roped in two lenders for an $800m financing to support its acquisition of Indian firm Gland Pharma.

Home building materials maker China Lesso Group Holdings will likely increase the size of its latest borrowing, thanks to a good response during general syndication.

In this round-up, growing Singapore-Chongqing ties, RMB qualified foreign institutional investor (RQFII) adds Singapore entity, and Bank of China’s RMB Index sees an uptick in May. Plus, a recap of GlobalRMB’s coverage this week.

Asia has had a good run of green bond issuance this year, but its contribution to global volumes slowed in the second quarter. Market participants are now calling for bigger participation from governments in the region to inject some momentum into an asset class that is facing multiple headwinds. Narae Kim reports.

Despite the technical challenges, it seems likely that People’s Bank of China (PBoC) will give the green light to a bond denominated in IMF special drawing rights (SDR) before the G20 summit in early September.

Beijing Enterprises Water Group (BEWG) sold its debut Panda bond on Tuesday raising Rmb4bn ($600m), in only the third publicly sold Panda debt in China’s exchange market.

Unrated China Minsheng Investment (CMI) successfully raised $500m through a bond on Wednesday, pricing the trade near fair value despite the absence of relevant comparables.

CDB Capital generated close to $4bn in demand for its debut bond on Tuesday, raising $500m. Despite some bankers having said the trade had a weaker structure than its comparable, robust demand from onshore accounts allowed the issuer to price through fair value.

Clearstream is looking to better connect global investors to China’s interbank bond market (CIBM) with a link set to launch in October. The firm is also working on a joint venture (JV) with the China Foreign Exchange Trading System (CFETS) to launch a bond exchange in Europe, GlobalRMB has learned.