China

For the second time in a week, officials at the China Financial Futures Exchange last Friday implemented tougher rules for traders attempting to sell.

Yunnan Water Investment is set to issue maiden bonds in the offshore debt market alongside onshore notes. The company is considering a range of currencies for its international debut, including US dollars, euros and offshore renminbi (CNH).

A $240m dividend recapitalisation loan for Asia Satellite Telecommunications' (AsiaSat) sponsor Carlyle has seen seven banks commit so far, with one more lender awaited.

A $165m triple-tranche loan for CVC-sponsored Asia Education Investment is due to close soon with commitments coming in from a couple of banks during general syndication — an outcome criticised by many.

Russia’s Vnesheconombank is in talks to sell Panda bonds, but the note will be placed next year at the earliest, said a source close to the borrower.

Following the recent devaluation of the renminbi, E Fund Management suffered some redemptions from its RMB qualified foreign institutional investor (RQFII) funds. Despite that, a more market-driven FX pricing mechanism is positive for further development of RQFII in the long run, says Jeffrey Qi, portfolio manager at the world’s second largest RQFII quota holder.

The Chinese authorities have made several steps towards the full opening of the capital account over the years. But mounting evidence of China’s economic slowdown has made those efforts look increasingly erratic. A step by step approach would be nothing to sneer at, but the authorities’ dance of reforms followed by shameless back-stepping risks transforming the whole business into a farce.

Shanghai Pudong Development Bank Co (SPDB) is due to start roadshow for a proposed dollar bond this week.

The vast majority of payments from South Korea to China and Hong Kong are now processed in RMB, Swift said in its latest RMB Tracker report issued on September 1. A day earlier, the State Administration of Foreign Exchange (Safe) said it had added three new Seoul-based institutional investors to the RMB qualified foreign institutional investor (RQFII) programme in August, with 60% of the Rmb80bn ($12.4bn) country quota now distributed.

A $240m dividend recapitalisation loan for Asia Satellite Telecommunications' (AsiaSat) sponsor Carlyle has seen seven banks commit so far, with one more lender awaited.

Onshore Chinese corporates are generally bearish on the short-term outlook for the economy as sentiment remains fragile, according to a new report from Standard Chartered. Companies are also predicting the renminbi will weaken by year end with the increased volatility increasing their interest in managing FX risk.

Property developer HKR International has increased the size of its borrowing to HK$8bn ($1.032bn) to accommodate the 14 lenders that have formed the syndicate group.