China

The first exchange-traded fund (ETF) investing in China’s onshore government bonds listed in Hong Kong on Tuesday and saw strong secondary market turnover. Traders said it was the fifth most actively traded ETF of the day, writes Carrie Hong.

The People’s Bank of China (PBoC) is expected to drain more liquidity from the domestic market through an open market operation on Thursday, in response to declining money-market rates since the beginning of the Chinese Lunar New Year, several market participants have told Asiamoney, writes Carrie Hong.

Bookrunners were expecting to price Shui On Land’s first dim sum bond Wednesday after final price guidance was announced that afternoon.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings has been forced to cancel its debut dim sum bond issue two days after issuing initial guidance. Sole bookrunner DBS struggled to price the deal as weak credit fundamentals meant the company failed to attract enough investors.

After announcing initial guidance for a dim sum bond on Tuesday morning, China Properties switched to a dollar deal on Wednesday morning in response to market feedback.

Italy’s largest bank Intesa Sanpaolo is making its first foray into the offshore renminbi market, launching a five year bond on Wednesday.

China Properties Group looks set to price its debut dim sum bond after it announced initial guidance on Tuesday.

Chu Kong Petroleum had still not priced its debut dim sum bond on Tuesday after announcing initial guidance the day before. The credit has faced a number of financial issues over the past year, including a profit warning. The bookrunner says that the response from investors is mixed but still hopes that the deal will price tonight.

The People’s Bank of China (PBoC) is set to release detailed rules on renminbi cross border trade settlement in the Shanghai Free Trade Zone (FTZ) this week, and major banks will sign related agreements with payment institutions on Tuesday, according to Chinese media reports, writes Carrie Hong.

Chu Kong Petroleum & Natural Gas Steel Pipe Holdings has released initial guidance on its debut bond - opting for dim sum - almost a month after competing its investor roadshow.

Central Plaza Development received overwhelming demand for its new three year deal on Monday but struggled to get much investor interest for the five year tranche due to buyside wariness about longer tenors and the issuer’s reluctance to push pricing.

In this week’s round-up of offshore renminbi news, Standard Chartered's Renminbi Globalisation Index rises 5.9% in Dec on rising deposits and cross-border payments; Citi introduces a Chinese Government and Policy Bank Bond Index to its RMB/CNH bond indices; JP Morgan and Deutsche Bank establish new treasury management services in the Shanghai FTZ.