China

The governor of Bank Negara Malaysia (BNM), the country’s central bank, said on August 17 it was seeking an agreement with People’s Bank of China to become the fourteenth jurisdiction with a RMB qualified foreign institutional investor (RQFII) quota.

In this round-up, Macau’s RMB trade settlement hits a new record, RMB deposits in Taiwan see a tiny drop, Bank of China’s international RMB usage index climbs again and CSRC publishes its updated list of new RQFII quota licences.

China Renaissance Securities (Hong Kong) has hired a new co-head of mergers and acquisitions, poaching Jeremy Choy from JP Morgan.

Everbright Securities Co navigated cautious market on its first outing to the dollar bond market thanks to the presence of anchors orders and a standby letter of credit (SBLC) from China Merchants Bank’s Shanghai branch. As the first BBB rated SBLC backed trade, it has set a benchmark for future issues.

More currency volatility and a shaky stock market may look scary, but the trend for foreign ownership of Chinese securities is up. Standing at just 2% of the Chinese market, further reforms can only boost the quota of Chinese equities and bonds in global portfolios, according to banks and asset managers.

HSBC has been mandated as the sole offshore RMB concentration bank for LME Clear, clearing house for the London Metal Exchange (LME), which accepted the offshore renminbi (CNH) as eligible cash collateral earlier this month. The bank has told GlobalRMB that the initiative shows the growing prominence of RMB in commodities markets.

We remarked last week that emerging markets could face a difficult time ahead. Well, we didn’t have to wait long before the early manoeuvers in a possible currency war had an impact on sovereign CDS spreads.

Jiangxi Jiangling Chassis Co has opened books on Singapore’s first Mainboard IPO of the year, launching an S$49m ($35m) deal on Thursday. But with Chinese shares teetering on the edge this week, bankers are foreseeing a bumpy ride during bookbuilding.

Trio to arrange $500m for SBI — NewOcean Energy returns for $170m — China duo clinch $1.1bn Wuxi take-private loan — Tiphone out for $184m — Kingboard to increase from HK$5bn

A $1.5bn chunk of financing backing the acquisition of the LED and automotive lighting division of Dutch company Philips has become a talking point because of its low amortisation and seven-year tenor. Syndication has closed for the deal, but it was too aggressive for some, as Shruti Chaturvedi reports.

The two leads on Yuexiu Real Estate Investment Trust’s (Reit) financing for its acquisition of Hongjia Tower in Shanghai are inviting lenders to join the syndicate.

Everbright Securities Co has started building books for what would be its debut outing in the dollar bond market. The Chinese brokerage firm secured a standby letter of credit (SBLC) from China Merchants Bank for the notes.