China

Chinese automobile dealer Zhongsheng Group Holdings is considering increasing the size of its $150m loan to accommodate excess demand. The deal offers all-ins close to 400bp and juicy pricing was instrumental in bringing in banks.

Structured finance analytics provider Intex Solutions has set up an office in Shanghai as it looks to meet the demands of China’s emerging securitisation market.

The bursting of China’s stock market bubble last week rattled investors, with Asian bourses feeling a contagion effect from the mainland’s collapse. As indices begin to steady, ECM bankers in Hong Kong are adamant the market is open for business, but discussions with potential issuers on pricing and timing are taking centre stage, writes Rashmi Kumar.

Primary deals are once again flowing in Asia ex-Japan amid a gradual untangling of the Greek debt crisis and an improving Chinese equities market. But even with the worst apparently behind them, market participants in the region are predicting issuance to be stop-start and dominated by investment grade credits as they prepare for the second half of the year, writes Rev Hui.

The return of one of China’s big four banks next week has put the market in a state of eager anticipation, with Bank of Communications (BoCom) set to go on the road for an additional tier one (AT1) preference share offering that could be as large as $2.46bn.

Chinese wealth management service provider Jupai Holdings priced its $53m IPO on the New York Stock Exchange at the bottom end of guidance on July 16, as its selling shareholders reined in the number of secondary shares on offer.

The first dollar bond to emerge from China following the Greek debt agreement proved to be a hit, with Shanghai Construction Group (SCG) attracting an eight-times covered book for a $400m offering.

Xinjiang Goldwind Science & Technology went live this week with what will be China’s first green bond. The trailblazer drew plenty of attention, with more deals expected both on and offshore once the country’s green bond regulations are finalised later this year.

A €600m ($663m) two year financing for China National Chemical Corp (ChemChina) has been opened into syndication. Two French lenders are leading the deal and they have invited a select group of banks to participate.

Tianjin Binhai New Area Construction & Investment Group did not have the best start to life in the dollar bond market, after both its three and five year notes widened by 10bp on their first day of trading this week.

Ping An Real Estate issued the first offshore renminbi (CNH) bond in three weeks on July 14, making it the first borrower to test appetite since the Greek referendum. Although the issuer had to offer a decent premium to get the deal done, the level was flat to its onshore funding costs.

The People’s Bank of China (PBoC) is to allow offshore commercial financial institutions to issue RMB-denominated bonds onshore in a bid to expand the Panda bond market, two sources have told GlobalCapital Asia's sister publication GlobalRMB. It may even permit proceeds to be moved offshore.