China

The Mutual Recognition of Funds (MRF) scheme has had a relatively slow start, but Chinese regulators are said to be looking at Luxembourg to expand the scope of the progamme, GlobalRMB has learned. But difficulties abound in bringing the project to reality.

China's GF Securities, which made its debut in the offshore syndicated loan market in 2014, is in talks with seven lenders for a fresh borrowing.

China’s Ministry of Finance (MoF) is poised to deliver its eleventh auction of offshore renminbi bonds in Hong Kong at the end of the month.

Yunnan Metropolitan Construction Investment Group Co is looking to join the slew of Chinese local government financing vehicles (LGFV) tapping the offshore bond market.

Bank of China said on Tuesday that it has signed a memorandum with the Poland Ministry of Finance to work on the sovereign’s upcoming Panda bond.

The Panda bond market has been gaining plenty of attention ever since the asset class rebooted last year with many issuers eyeing it as a good opportunity to tap into the Chinese investor base. Looking to join the club is Poland, although the country has little need for renminbi and will be swapping the proceeds back into euros.

Wuxi Construction and Development Investment Co kept momentum going for Chinese local government financing vehicles, pricing a new $300m three year bond on Monday. Onshore bank treasuries drove the transaction but high quality offshore investors, who typically stay away from a keepwell structure, also participated.

The recent opening of the China interbank bond market (CIBM) gives many global investors the widest access to the onshore fixed income market so far. Yet the entry of Chinese bonds into global indices remains a tricky proposition, according to market participants.

Easing Brexit concerns have supported better paying in CNY swaps. Looking forward, the NDIRS curve is expected to steepen on improving liquidity conditions and dim sum related swap flow, writes Deirdre Yeung of Total Derivatives.

Chinese auto rental company eHi Car Services, which sent out invitations for its debut $150m syndicated loan in early May, has attracted a few commitments.

Clearstream has confirmed that it is working with the Chinese authorities to establish a link between offshore investors and the China interbank bond market (CIBM). The firm also said it will boost its Stock Connect capabilities from July 4.

The State Administration of Foreign Exchange (Safe) has expanded a pilot renminbi conversion scheme that was previously confined to its four free trade zones. Market participants say this development could prompt more direct offshore bond issuance by Chinese companies and is part of the authorities’ latest efforts to negate capital outflows.