China

China’s Orient Securities Co is set to test market appetite for brokerages as it tees up a Hong Kong IPO of as much as $1.5bn. Its filing with the exchange comes at a time when the market environment for the sector looks good amid a broader improvement in sentiment, write Jonathan Breen and John Loh.

China is set to launch a new gold price benchmark via the Shanghai Gold Exchange (SGE), according to market participants. The initiative will see the involvement of both local and foreign financial institutions, marking a new achievement in China’s quest to make the RMB a reference currency in the commodity markets.

Bank of China Aviation is poised to meet investors ahead of its 144A return that could hit the market as early as next week, while HK Electric has mandated banks for Reg S notes.

Hungary opened books for a three year offshore renminbi bond on Thursday with initial price guidance set at 6.50%. The deal is not only the debut RMB offering from the Hungarian government, but also the first public dim sum bond since November 2015.

China needs to learn from the US and Europe if it wants a sustainable securitization market, a former chief adviser to the China Securities Regulatory Commission has said. He also criticised China’s regulators for not co-operating.

The outlook for the Chinese securitization market is bright, but there are flaws in the system that need to be addressed quickly, including the severe lack of secondary market liquidity, investors have warned an industry forum.

Hong Kong-listed China Green (Holdings) has missed redemptions and interest payments on two renminbi-denominated but dollar settled convertible bonds, according to a filing with the Hong Kong Stock Exchange on Tuesday.

A $315m five year loan for Stats ChipPac has been signed after being in syndication for six months. Eight banks eventually formed the lending group.

Echosens, the French subsidiary of Shenzhen-listed Inner Mongolia Furui Medical Science Co, is preparing a float on the main board of the Hong Kong Stock Exchange.

Yunnan Provincial Energy Investment Group is looking to issue its first dollar bond and has hired banks to set up investor meetings.

Beijing-based Sunshine Life Insurance Corp has opted for a triple-tranche offering for its debut in the offshore bond market, dividing the trade into three year, five year and 10 year notes.

The nascent Panda bond market could reach over Rmb300bn ($46bn) by 2020, according to Yan Yan, chairman of China Chengxin International Credit Rating (CCXI).