China

Investors are firmly back in risk-of mode this week as global stock markets take a battering. This is likely to put new issuance on hold for the rest of the month and the outlook for September also looks uncertain, say bankers.

A depreciating renminbi, depressed commodity prices and tumbling stock markets have made it hard for high yield issuers to access international capital markets recently. But financing needs remain, and the gaps can only be plugged if DCM bankers take a more inspired approach to deals.

Green bond issuance in Asia has taken off this year after sluggish growth in the past, according to data by Dealogic.

The global stock market meltdown caused a sharp selloff in US equities on Monday and the VIX index revealed investors’ fear of further falls.

Banks are processing approvals for a loan of around $300m to back the purchase of Ciro’s Plaza in Shanghai.

China Foreign-Exchange Trade System (CFETS) started posting a debut intraday USD/CNY reference rate on its website for the first time onAugust 24. The template of a table released today shows that CFETS will publish the reference rate five times a day, a move seen to be in line with China’s determination in further liberalising its FX market.

The Hong Kong Exchanges and Clearing (HKEx) group has hired former BNP Paribas (BNPP) head of RMB Julien Martin to join its fixed income and currencies (FIC) group.

Following an already disappointing week, Asia’s equity markets suffered another brutal sell-off when trading re-opened on Monday. The turmoil is confounding market watchers and turning up the heat on ECM, with bankers saying new issuance may be fighting a losing battle.

The last few months have been a bit of a roller coaster for Chinese equities, both on the mainland and in Hong Kong. The sharp volatility in the indices has frightened investors away and put a damper on primary issuance. But the bubble finally bursting is symptomatic that further changes are badly needed. These also need to be more than just skin deep, argues Philippe Espinasse.

The rapid growth in renminbi products and services in South Africa shows the country is well positioned to become Africa’s RMB hub. This is despite the growing competition from other countries on the continent, says Standard Bank.

China Energy Engineering Corp is gearing up for a Hong Kong IPO, with the company filing a draft prospectus on Friday. But it comes as Asian equities followed a global sell-off and Chinese shares slumped 4.3%, and as bankers sound the alarm over primary deal flow.

The International Finance Corporation (IFC) is hoping to be at the forefront of China's planned reopening of its Panda bond market as well as its development of green bonds. The supranational has told GlobalRMB that it is preparing a Panda bond return as well as bringing a broader onshore issuance programme that would include green offerings.