China

Industrial and Commercial Bank of China (ICBC) took the bond market by storm this week, printing a $2bn Basel III tier two offering, the first Chinese bank capital trade since May. Despite coming during a week dominated by speculation about the Federal Reserve’s decision on interest rates, ICBC still managed to meet its price and size targets, offering just a small new issue premium.

Houston Huang Guobin, a former Goldman Sachs coverage banker, has decamped to JP Morgan to take up the position of head of global investment banking for China.

Critics have raised red flags over China’s newly-mooted circuit breakers, arguing that the answer to state intervention in its stock market should not be more state intervention. The plan comes at an uneasy time, but is one that will work in China’s favour in the long run.

Weichai Power has mandated four banks to work on a proposed dollar offering, which would mark the company’s first outing in the international bond market.

The Hong Kong government this week made its pitch to be the link between Asean countries and China under the ‘One Belt, One Road’ initiative. The city should leverage its “super-connector” role to become the Asean trade centre on the OBOR map, said So Kam Leung, Secretary of Commerce and Economic Development Bureau of Hong Kong at the Hong Kong-Asean Summit on September 14.

PBoC downsized its open market operations in what some say reflects liquidity improvements from its other measures. After some initial paying 1-year NDIRS reversed course on emerging receiving interest and the short-end of the curve steepened accordingly, writes Deirdre Yeung of Total Derivatives.

Industrial and Commercial Bank of China (ICBC) opened books on Tuesday for a dollar tier two offering, taking advantage of the last issuance window before this week’s Federal Reserve meeting. The issuer is replicating the bullet structure used by Bank of China in its 2014 offering, a deal which saw a blowout response.

Chinese property developer Gemdale Corp is in the market to buy back $500m worth of bonds as the company seeks to optimise its capital structure.

The Ontario Teachers’ Pension Plan (Teachers’) has appointed Nicole Musicco to helm its Hong Kong operations in a newly created position. The move demonstrates the growing importance of the Asia Pacific region for the fund, which invests across asset classes.

Chinese state-owned enterprises (SOEs) are set for a shake-up following the release of guidelines to reform their management.

Goldman Sachs has lost a senior coverage banker following the resignation of the managing director of its China Industrials Group (CIG).

The trading arm of China’s Tewoo Group is raising a $100m two year onshore loan, with the amortiser offering banks an additional incentive for early commitments.