China

Ford Auto Finance (China) is preparing for what is set to be the last auto ABS from China this year with the Rmb2.99bn ($469m) Fuyuan 2015-2 Retail Auto Mortgage Securitization due to go live on December 7.

Chinese debt houses have gained market share this year thanks in no small part to the power of their balance sheets. While competitors have long criticised Chinese banks’ willingness to use capital to win a place on deals, there’s little reason to stop an approach that is clearly reaping rewards.

ICBC Sydney printed its first dollar bond on November 30, raising $300m from a trade that was more than three times covered.

Chinese notebook parts maker Luxshare Precision Industry has closed its three year revolver at $250m, partially exercising a $100m greenshoe.

Markets have been readying for the renminbi’s inclusion in the SDR basket for months, but now that we have the detail what do the experts think? GlobalRMB wraps up the most noteworthy of the market reaction, on- and offshore.

The renminbi may have got the go head to join the list of currencies backing IMF’s Special Drawing Rights basket, but the change will not actually go live until October 16. Although the IMF has said the delay is merely due to operational reason, questions are being asked about whether other factors are at play.

The Republic of Indonesia has returned to the dollar bond market for the third time this year for an up to $4bn deal, while eHi Car Services and Golden Wheel Tiandi Holdings are attracting high yield bids.

The first day of December is proving to be a big one for the renminbi. Fresh on the heels of news about the currency’s inclusion in the IMF SDR basket, the renminbi is now the second most active currency for payments between Japan and China/Hong Kong, according to Swift’s latest RMB Tracker.

In a widely anticipated move, the IMF executive board has approved the renminbi as the fifth currency in the Special Drawing Rights (SDR) basket of currencies with a weighting of 10.92%, the IMF said in a November 30 statement. The new SDR will go into effect as of October 1, 2016.

With green bonds accounting for a minuscule 1% of the total global fixed income market, a lot more needs to be done to grow the institutional demand needed to help meet climate change targets.

One Belt, One Road — a simple name for a vastly ambitious and complex project that China hopes will create demand overseas for its excess capacity in areas such as steel, cement and aluminium, and aid the transformation of its economy away from the domestic investment-led model. GlobalCapital explores the potential of this transformational infrastructure investment.

The opening up of the renminbi bond market could be as important and transformational for global capital markets as the launch of the euro.