China

Hong Kong’s landmark sukuk comes with a host of potential benefits for the wider Islamic finance market, Rafe Haneef, chief executive of HSBC Amanah Malaysia in Kuala Lumpur told IFIS. The deal’s success should help encourage other regional sovereigns to consider sukuk, but also has valuable implications for the dim sum and mainland Chinese markets.

In this round-up, Argentina is reported to have received the first tranche of an RMB swap line, RMB clearing in Hong Kong falls by 5%, Standard Chartered’s RGI index sees slower growth, Russia and China closer to indipendent messaging system, and Chicago’s CME signs MoU with Shanghai Clearing House.

Cagamas Global, a wholly-owned offshore subsidiary of Cagamas, the Malaysian national mortgage corporation, opened books for its debut renminbi-denominated bond on the morning of September 12 in what is being seen as a show of support from the Malaysian government for the internationalisation of the RMB.

US retail investors have been piling in orders for the International Finance Corporation’s green bonds this week after it offered the notes for the first time through its US retail channel. Meanwhile, it has mandated banks for a London-listed offshore renminbi bond set to be priced next week.

Powerlong Real Estate Holdings finally succeeded in tapping the dim sum market this week, raising Rmb1.5bn ($244m) via a 10.75% 2017 note on September 10. This was the issuer’s second attempt at a bond this year, having failed to price one in January.

Pelindo III eyes maiden dollar bond — Indonesia's MPM seeks debut — Tata Comms looks to tackle dollar inaugural — FWD picks five for roadshows — IFC mandates three for dim sum — Honghua seeks international debut

Swiber Holdings, a Singaporean offshore oil and gas industry service provider, issued a Rmb450m ($73.4m) three year bond at 7.75% on September 8. The deal will be cleared and settled on September 18 with the Central Depository Pte (CDP) in Singapore, making it the first Lion City bond from a Singapore corporate.

After a botched deal in January, China’s Powerlong Real Estate Holdings is back in the dim sum market, opening books for a Rmb1.5bn ($244m) three year paper on September 10. Gone is the issuer’s previously aggressive approach to pricing: the new deal is coming at a huge discount to its existing curve.

The acceleration of renminbi globalisation suggested by this year's flurry of offshore RMB clearing bank appointments does not mean that China is abandoning its approach of gradual experimentation, say analysts. In fact, the country's encouragement of multiple silos is in keeping with the classical Deng Xiaoping method of "crossing the river by feeling the stones", says Pauline Loong of Asia-Analytica.

Tsinlien Group priced at Rmb1.8bn ($292m) deal on Tuesday September 2. DBS, China Citic Bank International, Industrial and Commercial Bank Asia and Wing Lung Bank opened guidance on the three year CNH at 5.5% area before tightening to 5.2%-5.25%. The bond priced at par with a coupon of 5.2%.

In this round-up, more reforms are on the way for the first anniversary of the Shanghai Free Trade Zone, Taiwan launches its offshore renminbi Taibor benchmarks, a Chinese rating agency opened operations in Hong Kong, and Australia launched a "Sydney for Renminbi" initiative to boost its standing as an offshore RMB hub.

Hong Kong's and Shanghai’s stock exchanges and clearing houses finalised on Thursday an agreement to set up their Stock Connect mutual equity trading scheme. The pilot initiative will work alongside the successful RQFII quota programme to lay the foundation for the gradual opening of China’s capital account.