China

Multiple listings of ETFs could become a smart strategy for firms looking to attract a broader investor base for products sold under the renminbi qualified foreign institutional investors (RQFII) scheme. An RQFII ETF that was first listed in London was recently taken to Euronext Paris via Euroclear Bank, and Euroclear reckons the move is paving the way for others to exploit RMB alternatives.

A positive outcome to this year's review by the International Monetary Fund (IMF) of the potential inclusion of the renminbi into its Special Drawing Rights (SDR) facility could give a boost to interest in the currency from sovereigns, supranationals and agencies (SSAs), say market participants. Meanwhile, the IMF review is progressing, with the multilateral busy gathering data on trading flows.

The all-important deadline of July 20 passed without incident, Greece having redeemed its debt to the ECB with the help of a bridging loan. That doesn’t mean the crisis in Greece is resolved – far from it – but it does give the market some breathing space.

Bank of Communications managed to pull off a super-aggressive trade this week, pricing its $2.45bn additional tier one (AT1) offering in line with its larger peers Bank of China (BoC) and Industrial and Commercial Bank of China (ICBC). The key to that impressive feat was taking advantage of an investor base that had been starved of bank capital paper as well as higher yielding products, writes Rev Hui.

Xinjiang Goldwind Science & Technology ventured into uncharted territory on July 16 issuing the maiden green bond by a Chinese issuer. While the deal is expected to be the first of many, investors were largely indifferent to the trade’s green credentials.

Three Chinese issuers came out on July 23 with new bonds. China Oilfield Services (COSL) and China Minmetals launched bookbuilding for dollar offerings, while Capital Juda started taking bids for a offshore renminbi (CNH) bond.

Export Import Bank of Korea (Kexim) made a quick return to the offshore renminbi market this week, copying the pioneering approach it took in February when it sold the country’s first single tranche CNH deal to be listed in both Taiwan and Singapore.

A joint venture between New York's Depository Trust & Clearing Corporation (DTCC) and the Euroclear group could provide a model for a future Bond Connect scheme allowing foreign investors easier access to China's onshore bond markets, Euroclear has told GlobalRMB.

China Construction Bank (CCB) Financial Leasing Corp successfully issued its debut dollar bond on July 21. The $500m deal was multiple times covered as high quality investors competed to get their hands on the strong name in a rare sector that offered attractive pricing.

Bank of Communications (BoCom) opened books on July 22 to what is the first additional tier one (AT1) transaction out of China this year, selling a dollar-denominated preference share offering. Similar to its predecessors Bank of China (BoC) and Industrial and Commercial Bank of China (ICBC), BoCom already has plenty of clarity on the book ahead of launch in spite of some aggressive price guidance.

Commodity trader Trafigura has returned for its annual Asian financing, seeking $1.6bn from the offshore loan market. A number of existing lenders have formed the mandated lead arranger and bookrunner group for the deal, which mirrors the company’s 2014 fundraising in structure.

Die casting machine manufacturer LK Machinery Co has launched syndication for an HK$600m ($77m) three year amortising loan, picking HSBC and United Overseas Bank to arrange the deal.