China

In this round-up, RMB-denominated oil futures are to be open to foreign investors in China, the Brics-backed New Development Bank is to issue its first loan in RMB, and GF International has launched the first ETF based on the MSCI China A International Index in Asia.

Tingyi (Cayman Island) Holding Corp accessed the offshore renminbi (CNH) bond market for the first time on July 30 with a three year Reg S dim sum trade. Like its debut dollar outing, investors were drawn to the rare credit from China’s food and beverage sector but some stayed away due to renminbi depreciation fears.

Renminbi usage in South Africa has soared, according to data published this week by Swift. But although the country is still the only official offshore RMB hub in Africa, others are increasingly coming into the focus of Chinese regulators' internationalisation agenda. Kenya could soon see its first RMB clearing services, GlobalRMB understands.

Greentown China Holdings has opened books to a new five year non call three dollar bond on July 31 following the end of an exchange offer plus consent solicitation exercise a day earlier.

Chinese conglomerate HNA Group will hit the road ahead of its Reg S offshore bond in dollars, while its subsidiary HNA Capital has been waiting for the right issuance window for a dollar offering. The subsidiary wrapped up investor meetings in Asia and Europe last week.

Problems in Chinese and emerging market economies have become the biggest fear for credit investors for the rest of 2015, according to Bank of America Merrill Lynch’s July Credit Investor Survey — having not featured at all as a concern in the bank’s May poll.

This year Chinese securitization has struggled to continue the momentum it showed at the end of 2014, failing to come close to the increased Rmb500bn ($82bn) quota from regulators. While there is more than one reason behind why issuance has been slow, market participants are still confident the budding asset class will come good by the end of the year.

Ever since China started its securitization market a decade ago, there has been a lot of talk about the vast potential for the product. And while it’s true that securitization has been developing strongly, the country’s true potential lies in the still mostly untapped residential mortgage-backed security (RMBS) sector.

Beijing Capital Juda last week priced its first bond, raising Rmb1.3bn ($209m) from an oversubscribed three year deal that saw investors eager to gobble up a dim sum trade.

Chinese equities sent jaws dropping again this week after Shanghai posted its sharpest one-day plunge in eight years. While the market quickly picked itself up, equity capital market bankers believe this seesaw action is a huge incentive for mainland investors seeking a haven in Hong Kong, writes John Loh.

China Merchants Holdings (International) became the third Chinese issuer in less than a week to access the international bond market with a dual-tranche offering split between five and 10 year bonds on July 27. The identical structures and close proximity of the deals meant it was more or less the same result for the Chinese conglomerate.

China Modern Dairy has increased the size of its second overseas syndicated loan to $300m from a launch size of $150m, after two dozen retail lenders joined in general. The loan attracted lenders from Taiwan, China, Hong Kong, Japan, Indonesia, India and Korea.