China

Easing liquidity conditions supported offers in the very short end of the CNY swap curve on Monday. This drove some disinversion momentum in the 1s/2s NDIRS curve slope that sources expect to continue, writes Deirdre Yeung of Total Derivatives.

Industrial and Commercial Bank of China has mandated five banks to work on a US dollar-denominated Basel III tier two trade.

Another batch of offshore institutions was this week approved to invest in China’s interbank bond market (CIBM), in what authorities will hope will be seen as further proof of their determination to open up the country's capital market. But to become truly diversified, the CIBM needs a lot more than mere licences.

China Securities (International) Finance Holding Company sold its inaugural offshore bond on September 10. Although markets were jittery, the debutant took comfort in the fact that books were already covered by the banks working on the deal.

Chinese company Minsheng Financial Leasing’s offshore fundraising, which was launched at $200m, has received commitments from more than 10 banks during general syndication. But the final size of the loan is yet to be determined.

One of China’s largest private conglomerates, Fosun International, is continuing its reliance on equity capital markets to help fund the expansion of its insurance business. The company has announced a HK$11.7bn ($1.5bn) rights issue, which is poised to hit the market next month.

In this round-up, Chinese premier Li Keqiang said RMB internationalisation to continue, South Korea's RMB deposits halving in a few months, HKMA revamps its RMB liquidity facility, Singapore Exchange and Moscow Exchange see surging RMB trade volumes, Shanghai Gold Exchange expands its list of assets that can be used as collateral for trading to A-shares and foreign currencies, and Deutsche Bank joins OTC Clear as a clearing member.

Chinese premier Li Keqiang defended Beijing’s intervention in financial markets on Thursday, after a collapse in volumes at the China Financial Futures Exchange.

Shanghai Pudong Development Bank Co (SPDB) roared into the market on Wednesday, finding huge success with its debut $500m deal. The issuer managed to find the perfect window to execute its trade, tightening pricing aggressively but still ending up with a quality book.

Asia’s dollar bond market finally sprang to life this week with a trio of investment grade names successfully pricing deals. Participants are now hoping that the market is open for business, but lingering volatility means trades will come with a bigger price tag, write Narae Kim and Rashmi Kumar.

China Securities (International) Finance Holding Company has opened books for its debut offshore bond, while Qingdao City Construction Investment (QCCI) is planning to issue a senior perp for its second international outing this year.

Auto finance companies are taking the Chinese ABS market by storm this year with SAIC-GMAC adding to the surging volumes with a Rmb3bn ($471m) transaction this week. Even though pricing came just slightly above the middle of guidance, bankers on the trade said it was a level the company was more than happy to take.