China

Top 3 Offshore RMB DCM Transactions - 2012 YTD

In this round up of recent offshore renminbi news, Pimco bets on CNH, Citi predicts cross-border loans in Qianhai will outpace Hong Kong, and negative PMI figures causes the renminbi to weaken against the US dollar.

Tata Steel is preparing to issue the longest Singapore dollar bond sold by an Indian corporate in its first outing away from rupees. The bond will come just days after Tata Communications was able to reopen its February 2016 deal, pricing the tap at almost 50bp less than the original issue.

China’s regulators are set to approve RQFII quotas for international investment houses but asset managers advise caution when investing onshore.

Bond dealers were gearing up for another busy week as issuers starting marketing a raft of new issues from Union Bank of India, Parkson Retail Group, and Tata Steel.

Chinese high yield companies are flocking to the offshore renminbi market at the moment, making the most of pent-up demand and juicy after-swap funding costs. But despite the obvious benefits of turning to the market, mainland funding officials are still being told they need to keep their ambitions small — and their maturities short.

Chinese property company Kaisa Group started the spree of offshore renminbi bonds at the start of the week, raising Rmb1.8bn ($287.8m) from a three year deal that generated a whopping Rmb22bn of demand.

China’s largest listed brokerage, Citic Securities, is planning to sell a benchmark-sized dollar bond, guaranteed by Bank of China (Macau).

China Datang Corp, Golden Wheel Tiandi and Lai Fung Holdings priced offshore renminbi deals on Thursday, taking advantage of the big cost saving available for issuers in the market — and ensuring that this week was by far the busiest for dim sum issuance since the start of the year.