China

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

Tingyi (Cayman Island) Holding Corp is making its inaugural appearance in the offshore renminbi (CNH) bond market on July 30, taking bids for a three year Reg S trade.

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.

Chinese company Minsheng Financial Leasing has rolled out a $200m fundraising with two mandated lead arrangers and bookrunners. The deal follows an onshore facility being raised by the same borrower.

China's recent stock market volatility has made some international investors more jittery about putting their money to work in the country's domestic markets, but it is not putting everyone off increase their exposure to Chinese assets.

The London Metal Exchange (LME) has accepted offshore renminbi (CNH) as eligible cash collateral for its clearing house, LME Clear, following regulatory approval from the Bank of England. LME Clear told GlobalRMB that the initiative laid the foundation for further expansion in the future.

China is expected to introduce incentives for green bond issuance as part of its efforts to push forward its developing green bond market. Singapore should do the same, if it wants to bring its sluggish bond market back to life.

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 the 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.

Taiwan's stature as an offshore renminbi hub is being given a lift from expectations of the currency's further depreciation against the dollar. A flurry of deals came in the last month, with a particular surge in the last week.

Citic Capital Holdings has hit the market for a HK$1.8bn ($232m) three year loan, with six mandated lead arrangers and bookrunners in tow. The company is paying a lower margin for the three year borrowing than for a two year it signed in 2013.

Short-end CNY swaps have been very well offered after the People's Bank of China (PBoC) injected cash into the financial system and increased its currency fixing. The 1s/3s NDIRS slope remains flat but a very near-term correction is thought unlikely given the current equity market volatility, writes Deirdre Yeung of Total Derivatives.

South Korea’s Shinhan Bank wrapped a successful return to the offshore renminbi market on July 27, raising more than initially aimed on the back of strong demand. The issuer was also able to price the new dim sum bond inside its dollar curve thanks to a favourable cross currency swap (CCS).