China

Export-Import Bank of India (India Exim) is considering selling a renminbi-denominated bond in China’s domestic market in the first half of the year.

The China auto ABS market is having a busy start this year with SAIC-GMAC Automotive Finance poised to follow in the footsteps of Beijing Hyundai and Volkswagen to become the third issuer in 2016. But the originator is creating a first for Chinese auto ABS with a revolving structure.

Markit is preparing to launch what it said will be the first tradable emerging markets interest rate swap index.

Standard & Poor’s has downgraded Chinese mall developer Renhe Commercial Holdings to CCC- on Friday with the rating agency casting doubt over the company’s ability to repay a bond due in March.

In this round-up, Charles Li promises Bond Connect and RMB derivatives, ICBC sees cross-border business booming, Moscow Exchange looks to connect with Chinese investors, offshore RMB (CNH) still a top three currency on the EBS FX trading platform, and China clarifies rules for foreign banks looking to join the onshore FX market. Plus, a recap of the top GlobalRMB stories this week.

Commerzbank announced this week that it has received approval from the China Securities Regulatory Commission (CSRC) and Beijing Administration for Industry and Commerce (BAIC) to open a securities representative office in the Chinese capital.

The prospect of a huge financing package to back ChemChina’s $43bn acquisition of Syngenta has left bankers guessing how the two banks arranging the funding are going to structure and distribute the debt, especially as the lenders are working under separate mandates. Despite their size, the loans are expected to be well supported thanks to abundant liquidity in Europe and the target’s strong credentials, writes Shruti Chaturvedi.

Hangzhou Hikvision Digital Technology raised €400m in its international bond debut on Wednesday, in what was the second euro-denominated trade by a Chinese issuer this year. But unlike China Development Bank’s (CDB) deal last week, there was little European demand for Hikvision.

Credit Suisse announced its full year results for 2015 this week with the Swiss lender reporting pre-tax losses of Sfr2.42bn ($2.39bn). However its Asia Pacific business was one of the standout performers posting a pre-tax gain.

China’s State Administration of Foreign Exchange (Safe) has relaxed the rules on the Qualified Foreign Institutional Investor (QFII) scheme in another attempt to encourage inbound investment by offshore market participants. The move comes at a time when China has shut down the majority of its outbound investment schemes.

The stock of Chinese biopharmaceutical company BeiGene has shot up 18% on its first day of trading on the Nasdaq.

Markets were sceptical when the People’s Bank of China (PBoC) first launched an official RMB foreign exchange (FX) index, based on a trade-weighted basket of 13 currencies. Nearly two months later, experts are starting to give some credibility to the basket and are even proposing making it a more official part of China’s FX policy.