China

Citi has created a consolidated Asia Pacific debt syndicate team to sniff out opportunities in local currency issuance, while Deutsche Bank has appointed a senior executive to head debt syndicate and origination in the region.

January kicked off with China front and centre as the upheaval in its stock market caused indices across the globe to tumble. South and southeast Asia did not escape unscathed but the chances are that when markets stabilise, investors will be eager for equity issuance from the region.

The Securities Association of China (SAC) has released further guidelines on underwriting and allocation for IPOs, in line with the new rules issued by the China Securities Regulatory Commission (CSRC).

Asia’s primary dollar bond market has seesawed since the start of the year, with paralysis one day and a flood of deals the next. This has caused market participants to scramble to come up with different strategies to navigate the market, writes Narae Kim.

Volatility in Chinese equity and foreign exchange markets is spooking investors but the cheaper RMB and more reasonable valuations for A-shares might provide an ideal entry point for investment into the Mainland.

Deutsche Bank is forecasting net Panda bond issuance of Rmb20bn this year as part of a wider deepening of China’s onshore bond market including greater access for foreign investors.

In a starved Russian loan market peppered with asset backed loans, three Chinese banks have lent a highly prized unsecured credit facility of Rmb4.8bn ($730m) to Russian mining company Norilsk Nickel. It is the latest sign of the increasing importance of Chinese money in a Russian economy increasingly squeezed by international sanctions and falling oil prices. Elly Whittaker reports.

HNA Group International, a Hong Kong-based investment holding subsidiary of airline HNA Group, is preparing its debut Panda bond. The trade will be sold into China’s exchange bond market, which has recently started giving approvals for Panda bonds from red chip companies.

Hungary will not issue a dim sum bond until a period of sustained stability is seen in the Chinese markets, said bankers on Wednesday.

China Nonferrous Metal Mining and Vista Land & Lifescapes are meeting investors ahead of their respective dollar offerings, while Hangzhou Hikvision Digital Technology is set to gauge interest in Europe for a euro-denominated deal.

The drawing power of one of Asia’s top credits was on show this week with Ping An Life Insurance Co of China debuting in the dollar bond market with a $1.2bn deal that was multiple times covered across two tranches.

China Energy Reserve and Chemicals Group offered bond investors a generous premium to make up for its unrated status and for executing a deal with a less investor-friendly structure. Chinese banks, including those working on the trade, submitted anchor orders and contributed to the transaction's success.