China

As risk aversion mounts, high-yield dim sum bonds were being sold off in recent weeks, but Taiwanese brokerage SinoPac decided it was a good time to bargain hunt.

Sinotrans Shipping managed to defy the tough market to sell a three-year Rmb2.6 billion dim sum bond on Tuesday (October 4), giving many issuers a boost in confidence.

Sinotrans Shipping found enough demand to close a Rmb2.6bn ($407.8m) offshore renminbi bond this week, following the success of Beijing Enterprises Water last week. But the dim sum market has become a dire place to do business, and several large investors did not even consider either issue.

Beijing Enterprises Water closed a tap to its outstanding dim sum bonds at the end of last week, navigating a choppy secondary market that pushed the notes down by several points during bookbuilding.

China’s Dalian Port (PDA) is planning to make its debut in the offshore renminbi market, but will have to overcome a market that has become increasingly difficult over the last few weeks.

Hong Kong-listed Beijing Enterprises Water (BEW) approached investors this week with a plan to re-open a pair of offshore renminbi bonds it sold earlier this year, shrugging off the volatility that has firmly shut the dollar bond market. But bankers complain it is getting harder and harder to close deals.

Extreme turmoil in secondary markets has put the Republic of the Philippines’ $2bn financing package on hold.

Asia’s bond markets are firmly shut, and few bankers or investors are willing to bet on when they will open again. That places a premium on the ability of bookrunners to sniff out small pockets of demand — and shows issuers where the real skill lies.

Hong Kong-listed Beijing Enterprises Water is planning to return to the offshore renminbi bond market, and could close a tap to its outstanding three and five year bonds before the end of the week.