China

Singapore has received a new batch of initiatives to strengthen cross-border renminbi flows and capital market connectivity with China which will support greater use of the RMB outside the Mainland, says the Monetary Authority of Singapore (MAS) in a press release.

Troubled Chinese property developer, Kaisa Group Holdings, is one step closer to striking an agreement with its offshore debt investors, announcing a new restructuring programme on November 6.

Products under the umbrella in the Mutual Recognition of Funds scheme (MRF) will not require institution or product level quotas, the Chinese regulator said on November 6. But experts argue the MRF’s rules may limit its appeal among foreign asset managers, in particular those without an established joint venture in the Mainland.

Chinese technology giant Tencent Holdings is due to hit the syndicated loan market for a fundraising of as much as $1.25bn.

China Huarong Asset Management has lined up 15 banks for what will be its second outing of the year, while Beijing Properties is looking to make its offshore debut.

Nine offshore RMB clearing banks have been given approvals from the People’s Bank of China (PBoC) to participate in China’s onshore foreign exchange derivative sector, marking another step in China's capital market liberalisation China’s capital market.

Future Land Development Holdings breathed some life back to the Asia ex-Japan high yield bond market this week with a red hot $250m bond that was close to 10x subscribed.

Industrial and Commercial Bank of China New York has wrapped up its second offshore bond, sealing $1bn on November 5. But while Asian interest was strong, the issuer’s aggressive pricing tactic meant demand from US investors was lacklustre.

In this round-up, Chinese government sets capital account convertibility goal for 2020, IMF yet to decide on RMB SDR inclusion, Shenzhen Connect unlikely in 2015, and cross-border RMB trade settlement in Hong Kong hits new record.

Dali Foods Group Co has given the Hong Kong IPO market a burst of excitement, launching a HK$10.4bn ($1.34bn) listing that could become the biggest float by a privately-owned company in the city this year. Bankers are touting it as the first deal in a long time to conduct a real institutional bookbuilding rather than simply relying on Chinese state-owned enterprises for demand. Rashmi Kumar reports.

HSBC took a big step forward in furthering its China ambitions this week, entering into an onshore joint venture securities firm with Shenzhen Qianhai Financial Holdings. The first priority is to launch an onshore debt business but the bank has ambitions eventually to offer a full range of investment banking services. Rev Hui reports.

Primary activity has finally returned to the Asia ex-Japan high yield market following a hiatus of close to three months, with Future Land Development Holdings launching a deal on Thursday. While the pipeline remains thin, market participants are taking heart that not all is lost for the asset class, writes Rev Hui.