China

Export-Import Bank of Korea (Kexim) has closed books on three year note, raking in Rmb1.25bn ($201m) from the dim sum offering. The deal, which was driven by reverse enquiry, hit the market on a busy day but managed to raise more than planned.

Investors piled into the first offshore renminbi bond from Lenovo Group, keen to get their hands on some rare corporate supply. The strong response allowed the borrower to upsize the five year offering to Rmb4bn ($645m), equalling the record for the largest corporate dim sum bond.

Asset manager Vanguard is allowing a twelve-month transition for its funds to reflect the FTSE Emerging Markets Index’s new weighting of China’s A-shares, the company told GlobalRMB.

Global asset manager Vanguard has followed up the decision by FTSE Russell to begin including Chinese A-shares in its emerging markets indices with an announcement on June 2 that it will give A-shares an initial 5.6% weighting in its Vanguard Emerging Markets Stock Index Fund.

The dim sum bond market is set to welcome a new name with technology giant Lenovo Group opening books to an up to Rmb3.5bn ($574m) offering on June 3.

International banks are increasingly setting up in free trade zones (FTZ) in China, keen to expand their RMB business and mainland footprint.

Dubai Gold & Commodities Exchange (DGCX) is planning to offer renminbi derivatives by Q3 2015. The exchange recently signed a memorandum of understanding (MoU) with Bank of China (BoC) and a separate agreement with the China Futures Association (CFA).

Anhui Transportation Holding Group (Anhui Transport) has mandated a sole global co-ordinator to arrange a series of investor meetings ahead of its debut outing to the dollar bond market. Haikou Meilan, meanwhile, is preparing a dim sum deal.

Hong Kong funds face difficulties in taking advantage of the mutual recognition of funds (MRF) scheme that will kick off in one month's time, analysts and market professionals have told GlobalRMB.

Chinese credit rating agency Dagong expects more RMB clearing centres to be established, facilitating RMB clearing not just for trade but a variety of financial products.

After an eye-catching surge of Formosa bond issuance from international issuers in the first few months of this year, Taiwan’s renminbi market has been cooling down since early April. Amid the dearth of issuance, local insurers have told GlobalRMB they would like to see RMB AT1 and tier two offerings come to Taiwan.

The announcement by index provider FTSE Russell to give A-shares a weighting in some of its indices is a further sign that China’s securities are ready to enter the wallets of global investors. And the firm has told GlobalRMB that it expects A-share inclusion in global indices within three years.