China

Industrial Bank of Korea is considering returning to the Samurai bond market later this year to pre-fund bonds it has maturing in 2012. But the policy bank has hit its funding target for the year and is in the comfortable position of being able to watch the volatility in secondary bond markets without being forced to launch a new deal.

Pakistan’s Meezan Bank is pitching several companies on the idea of issuing short term Islamic bonds, following its market-opening issues for a pair of domestic corporations over the past month.

The Chinese government flooded the dim sum bond market with Rmb15bn ($2.34bn) of bonds across a range of maturities this week, offering investors some activity after several quiet weeks — and opening the doors to a flood of issuance expected over the next few months.

Li Keqiang, vice premier of the People’s Republic of China, gave debt bankers plenty of reason for excitement this week by announcing a number of long-awaited schemes that will help develop the offshore renminbi market. But analysts are wary of getting too excited by what are still quite vague pledges.

Li Keqiang, Vice Premier of the People’s Republic of China, gave debt bankers plenty of reason for excitement on Wednesday: announcing a number of long-awaited schemes that would help develop the offshore renminbi market, including the creation of mini-QFII licenses. But the devil is in the detail, and analysts are wary of getting too excited by what are still rather vague pledges.

To bolster Hong Kong’s position as the offshore renminbi hub, the visiting vice premier of State Council Li Keqiang said the central government will make the renminbi Treasury bond issuance in the city a long term institutional arrangement.

The Shanghai Rural Commercial Bank (SRCB) has underlined its plans to build out its trade finance and FX business with the hire of ex-ANZ banker David Chan. ANZ has a 19.9% stake in SRCB

China has increased its holding of US Treasuries for the last three months contrary to the perception it's doing otherwise. Analysts argue there are few other low risk, liquid options for the country now.

Potential issuers of dim sum bonds are still concerned about the prospects of remitting offshore renminbi into China pleading the case guidelines are still too vague and uninviting.

DCM and syndicate bankers are eagerly watching the Chinese government’s auction of offshore renminbi bonds this week before they attempt to launch new deals in the dim sum market. But there is some debate over how useful the multi-tranche deal will be for pricing future issues.