China

Bank of Communications (BoCom) Financial Leasing is preparing for its first bond of the year, having mandated five banks to run the deal.

There was widespread surprise among analysts on Tuesday at the People's Bank of China (PBoC) move not only to weaken the onshore RMB (CNY) fixing by nearly 2% overnight, but also introduce a new system to establish the daily central parity rate from August 11.

The CNY rates market slumped on Tuesday after the People's Bank of China (PBoC) dropped its currency fixing by a record 1.9% alongside announcing a new methodology for conducting its daily fix. USD/CNY was set at 6.2298, its lowest level in almost three years.

A pair of Korean policy banks have shown their savviness by opting for single tranche offshore renminbi trade bonds dual-listed as a dim sum and Formosa bond. Strong international credits should take this fairly new structure more seriously if they are looking for opportunities to save costs and secure new investor bases at the same time.

Guotai Junan’s Rmb500m ($80.6m) ABS has set a new landmark in China's securitization market, which has welcomed a raft of new asset classes this year. But while the opening up of a new funding channel for Chinese brokers has excited some market participants, others are worried it could deepen the country’s margin financing troubles.

The People's Bank of China (PBoC) has changed its daily exchange rate fixing methodology to make it more related to market levels, in a move that analysts saw as helping the renminbi's case for inclusion in the International Monetary Fund's SDR basket.

Yingda International Leasing, a company owned equally by General Electric and China’s State Grid Corp, is seeking an Rmb500m ($82m) three year loan in general syndication, with the help of two Taiwanese banks. The deal comes with a greenshoe allowing the bookrunners to double its size to Rmb1bn.

One bank has sent out invitations for a $200m refinancing being raised by Indian travel company Cox & Kings, according to two sources.

The International Monetary Fund (IMF) should take into consideration renminbi transactions involving Hong Kong when assessing the currency's international usage, the Hong Kong Monetary Authority (HKMA) has told GlobalRMB. The current treatment excludes such flows, but even partial inclusion could tip the scales for the RMB's eligibility for the IMF's Special Drawing Rights (SDR).

The RMB globalisation index (RGI) published monthly by Standard Chartered (StanChart) fell by 2.8% in June from a month earlier. The key reason for the drop was lower FX turnover, but ongoing liberalisations should support the market in the coming months.

HSBC has taken a knife to its forecast of volumes of offshore renminbi bonds and certificate of deposits for the year, as attractive costs of onshore funding steal the limelight from dim sum issuance.

Nanjing Xinjiekou Department Store, a subsidiary of Nanjing Cenbest, has announced its plan to issue offshore bonds in order to acquire China Cord Blood Corporation (CCBC)’s China business.