China

Chinese real estate developer Carnival Group International Holdings tapped the offshore debt market for the first time on November 27, raising Rmb500m ($81.5m) via a dim sum bond.

The RMB Qualified Foreign Institutional Investor (RQFII) programme grew again in November, with China’s State Administration of Foreign Exchange (Safe) giving out four new licences and the China Securities Regulatory Commission (CSRC) assigning a further Rmb4bn in quotas to two institutional investors.

In this round-up: PBoC issues RQDII programme rules, RMB is used for more than 10% of China payments in 50 countries, 30 central banks hold RMB in their currency reserves, and Hong Kong renews its RMB swap agreement with China.

Australia's newly granted offshore renminbi hub status will enable it to build stronger cross-border linkages with China, its largest two-way trading partner, with big benefits expected for international RMB trade and investment, says Andy Whitford, Westpac Institutional Bank’s head of Greater China.

After all the hype, the reality was always going to be a disappointment. But the slightly subdued launch of the Shanghai-Hong Kong Stock Connect programme earlier this month, and in particular the minimal use of its southbound channel for mainland investors to buy Hong Kong stocks, has nonetheless surprised many observers. The northbound quota, meanwhile, is being slowly but steadily used up.

Bond investors are bracing themselves for what is widely seen as the last blockbuster trade of the year, with Industrial and Commercial Bank of China (ICBC) on the road for a $5.7bn additional tier one (AT1) deal. ICBC's deal, while slightly smaller than Bank of China's recent $6.5bn AT1, is nonetheless set to steal the spotlight through its triple-currency structure that includes a record-breaking offshore renminbi portion, writes Rev Hui.

The Export-Import Bank of Korea (Kexim) has completed its second CNH bond of the year with a Rmb1bn ($163m) offering that was split between a three year and a five year. While the order book was not big by Asian standards, the issuer was able to put it to good use and price an extremely tight bond.

Renault returned to the dim sum bond market on Wednesday, after making its debut in 2012 and a return visit in 2013. This time it brought a Rmb500m (€65m) three year issue.

China Merchants Bank (CMB) Hong Kong branch priced its debut offshore renminbi bond of Rmb2bn ($326m) on November 25. The deal was equally split into a three year sold at 3.95% and a five year priced at 4.05%, and the two tranches were separately listed in Singapore and Taiwan.

Just days after China Construction Bank (Asia) sold the biggest ever Formosa bond through the first four tranche structure seen in Taiwan’s local renminbi market, Bank of Communications (BoCom) Taipei Branch is set to launch its own four tranche deal on November 27, two bankers close to the deal have told GlobalRMB.

The Export-Import Bank of Korea (Kexim) successfully completed its second CNH bond of the year with a Rmb1bn ($163m) offering that was split between a three year and a five year. While the order book is not big by Asian standards, the issuer was still able to put it to good use and price an extremely tight bond.

Chinese real estate developer Logan Property Holdings launched a two-day roadshow on Tuesday as prepares its maiden dim sum bond six months after selling its inaugural international issue.