CITIC Securities

A pair of Chinese regional lenders, China Zheshang Bank and Bank of Tianjin, have created a stir in the market, pricing the year’s two largest IPOs globally. The firms raised a combined HK$20.4bn ($2.6bn) and pushed Hong Kong’s stock exchange to the top spot for primary market volume so far in 2016.

China Zheshang Bank has net HK$13bn ($1.7bn) after wrapping up the world’s largest IPO so far in 2016, but had to price low to stay in line with investor interest.

Rici Healthcare Holdings has submitted a preliminary prospectus to the Hong Kong Stock Exchange for a potential $250m IPO slated for the second half of the year.

Hutchison China MediTech (Chi-Med) has pocketed $101.25m from its Nasdaq IPO, debuting on the exchange on Thursday. But it had a lukewarm start, dropping 0.74% at the end of its first trading day.

Chinese regional commercial lenders Bank of Tianjin and China Zheshang Bank are looking to raise a combined HK$23.1bn ($3.0bn) through listings in Hong Kong, with both issuers leaning heavily on cornerstone investors.

China Zheshang Bank has launched a Hong Kong IPO of up to HK$13.6bn ($1.75bn), which has the potential to be the largest listing in the city so far in 2016.

China Zheshang Bank is gauging demand for a $1.5bn-$1.6bn IPO in Hong Kong and plans to launch the trade next week.

China Development Bank Financial Leasing Co is looking to raise as much as $1bn with a Hong Kong IPO in the first half of 2016, according to a source with knowledge of the plan.

China’s first revolving auto ABS successfully priced this week with SAIC-GMAC Automotive Finance bagging Rmb3bn ($456m) from the landmark Rongteng 2016-1 Retail Auto Mortgage Loan Securitization.

The China auto ABS market is having a busy start this year with SAIC-GMAC Automotive Finance poised to follow in the footsteps of Beijing Hyundai and Volkswagen to become the third issuer in 2016. But the originator is creating a first for Chinese auto ABS with a revolving structure.

Despite the terrible start for China’s equity market this year, primary issuance has kicked off with a bang. Year-to-date A-share equity capital market volumes are at a record high, with follow-on offerings leading the way.

In a break from the consensus, CLSA’s equity strategist, Christopher Wood, said the renminbi will be stable this year against the new trade-weighted basket introduced by the central bank. However, he viewed the introduction of the offshore renminbi (CNH) as a mistake as shown by the huge amount of reserves spent to defend the currency.