China

A recent flurry of developments related to Chinese offshore and onshore bond markets, coupled with a burgeoning (but not yet flowing) pipeline of Panda bonds is sparking talk that the next great leap forward for cross-currency basis swaps is within touching distance, writes Roger James of Total Derivatives.

China Hongqiao Group is in the market for a $700m three year refinancing that launched on May 16, via seven bookrunners. The loan offers fees that encourage lenders on a 2015 loan to up their exposure to the company.

The four month hiatus in Panda bond issuance in China’s interbank bond market has ended with Chong Hing Bank’s Rmb1.5bn ($229m) note.

China Development Bank (CDB) has raised $1.67bn equivalent from a dual-currency, triple-tranche offering, receiving strong support from Chinese banks and offshore investors.

A new securities joint venture is set to be established under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), with six companies joining hands to form Yuegang Securities.

The US has finally engaged with the internationalisation of the renminbi after years of stubbornly ignoring the currency’s rise. Market participants have welcomed the Rmb617m ($94.15m) worth of instruments issued by the New York branches of Agricultural Bank of China (ABC) and Industrial and Commercial Bank of China (ICBC), but say the developments are long overdue. Rev Hui reports.

China Huarong Asset Management and Midea Group are out with their respective dollar offerings while France’s BPCE is attracting bids for a Singapore dollar-denominated Basel III tier two.

The RMB lost ground against other global currencies in April 2016, dropping from the fifth to the sixth most used payment currency, according to the latest Swift data. Meanwhile, Swift has seen usage of its platform for RMB securities settlement surge as the Chinese bond market opens to foreign investors.

China attempted to position its upcoming offshore renminbi sovereign bond as a sign that markets have full confidence in the country’s economy at a launch for the deal at a ceremony in London today.

BOC Aviation has wrapped up bookbuilding for its HK$8.7bn ($1.1bn) with a wealth of demand from institutional and Hong Kong retail investors.

China Three Gorges (CTG) made an impressive return to the bond market on Tuesday with a $1.5bn dual-tranche offering that was well-liked by investors, even though pricing was aggressive.

China Construction Bank Financial Leasing Corp has wrapped its dollar return in style this week, in the third deal from a Chinese financial leasing company in just over a month. Unlike its industry peers however, CCB Leasing stuck to Reg S only format and went for a shorter end of the curve.