China

Société Générale became the first foreign bank to turn to the offshore renminbi market to fund its operations in mainland China, when it sold a Rmb500m ($79.4m) deal last week. The French bank now looks set to become a regular borrower in the market.

Regulators are poised to allow select Chinese corporates to tap the offshore renminbi loan market, but tight CNH liquidity is poised to limit activity.

The Chinese currency’s strengthening stance has become weaker on the back on fading structural and cyclical forces, says the bank.

Taiwanese banks should take advantage of favourable market conditions for offshore renminbi (CNH) bond issuance to increase their reserves, rather than rely on new branches in China and Hong Kong.

Philippine geothermal energy producer Energy Development Corp and developer Filinvest Land plan to sell Ps18bn ($422.6m) of domestic bonds between them, joining a string of other issuers rushing to tap the market amid concerns that borrowing rates will move up in the second half of the year.

Singapore’s domestic bond market attracted several borrowers this week, keeping bankers busy and making up for the absence of any Asian deals in the international debt market.

The Chinese government will continue to allow the renminbi to appreciate until the US election is over, says Bank Sarasin.

Taiwanese banks may open new branches in China and Hong Kong to meet their long-term renminbi and CNH capitalisation needs, debt syndicate sources say.

Singaporean casino operator Genting is selling as much as S$700m ($555.2m) of perpetual bonds next week, turning to retail investors to increase the size of an already record-breaking deal.

Philippine geothermal energy producer Energy Development Corp and developer Filinvest Land are planning to sell Ps18bn ($420.5m) of domestic bonds between them, joining a string of other issuers that are rushing to tap the market amid concerns that borrowing rates will move up in the second half of the year.

Analysts say that Chinese regulators optimally timed the quota expansion for investment into the onshore market, allowing them to better control the flow and direction of capital.