China

The RMB qualified foreign institutional investor (RQFII) scheme has been instrumental in putting offshore RMB liquidity to work since its launch in 2011. But despite the recent widening of market access raising questions about the scheme’s rationale, it continues to appeal to international asset managers wanting access to China.

Chinese power plant manufacturer Huaneng Power International has been granted permission from the China Securities Regulatory Commission to issue up to Rmb4.2bn ($638m) of bonds.

China Resources Land successfully sold a Rmb5bn (759m) dual-tranche Panda bond this week, becoming the first real estate company to print this format in China’s interbank bond market.

China State Construction Engineering Corporation Limited and Tianjin Infrastructure Construction are getting ready to meet investors ahead of their respective dollar fundraisings.

A slew of onshore bond defaults by Chinese state-owned entities has sent a chill through the market over the past couple of months, with more expected to be in store. But with the market calming down in May, it’s time to take stock and realise that such defaults are part of China’s transition to a market-driven economy — and are essential for the long-term health of the country’s debt market.

With a Federal Reserve rate hike possibly coming in June, the question on top of analysts’ minds is whether there will be a repeat of the panic in the RMB market like what was seen in January. But luckily this time around, China’s commitment to stability is likely to keep volatility at bay.

Foreign investors looking to put their money into China’s interbank bond market (CIBM) are welcoming the release of a more accommodative set of guidelines. The rules are an expansion of an announcement made three months ago and are widely seen as a prelude for the inclusion of China’s bond market into global indices.

Dalian Wanda Group has firmed up financing totalling HK$30.78bn ($3.9bn) for a HK$34.5bn offer to take its property arm private.

Asset manager BlackRock has made senior changes to its fixed income business as Joel Kim, head of fixed income for Asia Pacific, plans to leave the firm at the end of August.

Dongfeng Nissan Auto Finance is set to make its annual return to the ABS market with a Rmb3bn ($457m) VINZ 2016-1 Retail Auto Loan Securitization. But unlike its previous China auto ABS transactions, the company will be selling an additional fixed rate senior tranche when books open on Thursday.

China’s transition from a highly managed exchange rate regime to a more flexible one has come under much scrutiny, especially in light of the sharp drop in the renminbi. Even though the currency has started to stabilise in recent months, the Federal Reserve is still a wild card. Rev Hui reports.

China’s efforts to promote the renminbi have been focused on getting the currency out into the world. But since last year there has been a noticeable shift, with Beijing ratcheting up attempts to entice the world into its domestic markets. A new phase of renminbi internationalisation has begun, writes Carrie Hong.