China

The British bank believes that the squeeze of domestic liquidity and other factors will lead more borrowers to tap the offshore renminbi market, leading levels of issuance to soar this year.

The country’s financial regulator has proposed allowing the island’s domestic insurance companies to invest in offshore renminbi products with an aggregate investment quota of up to TWD400 billion (US$13.9 billion), in hopes of boosting investment returns.

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Two FIG Samurai transactions have been pulled in the space of a week suggesting the market is beginning to flag for FIG borrowers.

Bankers have lined up the first-ever dim sum bonds from Indian and Malaysian borrowers, after convincing Infrastructure Leasing & Finance Services (IL&FS) and Genting to test demand from offshore renminbi investors.

Two Indian borrowers have added their names to a growing list of potential dollar bond issuers, showing that DCM bankers are still able to win mandates despite the dire state of the dollar bond market. But some bankers fear that the growing pipeline will only cause trouble in the long run.

After a strong start to the year, the Samurai market is beginning to flag for FIG borrowers, with two transactions pulled in the space of a week.

Bank of America Corp is preparing to extend international banks’ golden run in the Samurai market next week. It will follow a four tranche trade Lloyds deal that was priced this week — and which may be the last European name to print until volatility subsides.

The offshore renminbi bond market has clearly captured the imagination of investors: volumes are constantly rising, and more and more funds are being set up to profit from the excitement surrounding the market. But not all investors are bullish about dim sum bonds, even those running renminbi-dedicated funds.