China

Singapore’s Ezion Holdings launched a three year bond in the city-state’s domestic bond market on Monday, its first tap of a $500m multi-currency debt issuance programme set up last week.

The UK-headquartered bank was considered the best for overall offshore renminbi services and the standout institution across a set of other categories in ASIAMONEY's debut survey of this growing market.

The Chinese government has loosened rules on corporations selling debt in the offshore renminbi market, making the approval for mainland companies to sell dim sum bonds easier than it is for them to sell debt on the mainland. But the rising cost of funding offshore means there will not be a big rise in volumes in the near-term, according to HSBC analysts.

Taiwan may have ambitions of becoming an offshore renminbi trading centre – with China fanning the flame – but Taiwan shouldn’t bet on it transpiring.

As China liberalises its capital account and pushes for a more internationalised renminbi, Hong Kong’s role as the powerful intermediary between the mainland and the global financial market will diminish. Is there anything the financial hub can do to retain its present allure? Anita Davis reports.

Foreign investors are hungry to get access to China’s capital markets, and the small moves to allow investor inflows are nowhere near enough to sate their appetite. But investor protection in the country is not strong enough, and foreign investors should take great care before investing in the mainland market.

Philippine mobile operator Globe Telecom is planning to sell Ps10bn ($236m) of domestic bonds later this month, following parent company Ayala Corporation curve-lengthening successful offering of 15 year bond last week.

German state-owned development bank KfW made its debut in the offshore renminbi bond market on Wednesday, raising Rmb1bn ($158m) from a two year deal.

State-owned KfW debuted in the dim sum bond market this week, raising Rmb1bn ($158m) and becoming the fourth issuer from Germany to sell offshore renminbi bonds. (See Public sector borrowers section in the main paper for full details of the transaction.)

The Hong Kong Monetary Authority (HKMA) and People’s Bank of China (PBoC) need to take action to improve the pool of offshore renminbi or risk thwarting the currency’s internationalisation.

Easing regulations for dim sum bond issuance will lure Chinese entities with overseas M&A ambitions to the offshore market.