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Emerging Markets

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Business has sagged in the third quarter, but the pipeline is busy, despite an intractable war
Private bonds are now being offered in the open market wider than where public deals trade
Even as USTs stay near 5%, supply expected to pick up

Data

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  • More Chinese technology start-ups have come out with their IPO plans, as Pinduoduo, Aurora Mobile and Opera file their US debuts.
  • Hong Kong was inundated with IPO filings this week as banks sought to give themselves enough runway to launch deals before the end of the year.
  • Xiaomi Corp may have raised a little less than expected in its much-hyped Hong Kong debut, but China Tower Corp is ready to steal the thunder with a juicy $10bn IPO.
  • The National Development and Reform Commission (NDRC), China’s offshore debt regulator, has denied considering a ban on bonds with maturities of under one year, giving the market some relief. But confusion and worry remain, writes Addison Gong.
  • China’s Ministry of Finance sold Rmb5bn ($755.5m) of offshore RMB bonds on Thursday, and managed to keep the coupons of the two tranches below last year’s levels. But analysts say the sovereign’s success was limited by a modest fundraising target, which partly reflects the shift of focus to onshore Chinese bonds.
  • The Hong Kong Stock Exchange’s revolutionary change to its listing regime for biotechnology companies is starting to pay off, as the pipeline of pre-revenue firms looking to go public builds. But there are numerous challenges ahead, not least in understanding the sector and the risks involved. Jonathan Breen reports.