China

There is plenty of optimism surrounding China’s budding green bond market this year. Fresh from Shanghai Pudong Development Bank’s (SPDB) landmark Rmb20bn ($4.3bn) transaction, Industrial Bank has now joined the fray by raising Rmb10bn.

There is a rapidly forming view that China has given up on reform, given up on RMB internationalisation. The solution? Let the RMB float freely as promised, a radical shift in approach that would preserve China’s foreign exchange reserve and put the reform agenda back on track, says Saxobank.

CLP Holdings, the larger of Hong Kong’s two electricity providers, is considering issuing a green Panda bond to finance its renewable energy projects, according to CFO, Geert Peeters.

The Australian subsidiary of US asset manager Vanguard received an additional Rmb20bn ($3.03bn) quota from the State Administration of Foreign Exchange (Safe) on January 27, making the firm the second largest RMB qualified foreign institutional investor (RQFII) globally.

HNA Group sealed a quick return to the bond market on Thursday with a $35m tap of its inaugural outing from last November.

In this round-up, Chinese premier Li discussed RMB foreign exchange volatility with IMF's Lagarde, the Asian Infrastructure Investment Bank formally launched, a new A-shares exchange traded fund launched in Hong Kong, while a survey found Hong Kong retail investors fear RMB volatility most for 2016, and Tajikistan activated its currency swap line with China. Plus, a recap of GlobalRMB's top stories this week.

Do you know your RQFII from your RQDII? Worried you should have got a QDII2 instead of a QDLP? The alphabet soup of Chinese investment schemes can be hard to digest but thankfully GlobalRMB is here to provide a quick breakdown.

Yue Xiu Enterprises has doubled the size of its loan to $400m after seeing strong demand from lenders during syndication.

DCC — SIG — Capital & Regional — Transcom — North Energy

The Hong Kong Stock Exchange (HKEX) wants to give investors access to IPOs in the city and China, with an “IPO connect” now in the works. But with investors still reeling from the turbulence in China’s A-share market, the move faces plenty of challenges.

China Railway Rolling Stock Corp hit the equity-linked market this week for $600m, becoming only the second firm to print an H-share CB in Asia since 2007. The deal, which follows a similar issue from a Chinese peer earlier this month, has set in motion the transition from a rare deal type into a regular funding option.

The RMB is now the most active currency used by the United Arab Emirates and Qatar for direct payments with China and Hong Kong, the latest data from the Swift shows. This is despite global expectation of a further weakening in the renminbi.