Greater China

Cathay Pacific Airways has sold the largest convertible bond by a Hong Kong issuer in over a decade, raising HK$6.74bn ($869.4m).

China is allowing banks to issue perpetual bonds with an equity conversion provision, an attempt to balance the need to help smaller lenders shore up their capital with a desire to protect investors. Addison Gong reports.

Red chip issuer Yuexiu Transport Infrastructure ditched its usual bullet bond structure in favour of a five year puttable Panda outing this week.

Hong Kong’s government returned to the green bond market with a $2.5bn triple-tranche deal this week, making the most of growing investor demand for sustainable investment opportunities. Morgan Davis reports.

Tencent Holdings is testing bank appetite for a jumbo loan of $6bn as it gets ready to once again shun syndication in favour of a club deal. But the razor-thin pricing on offer is likely to pose a challenge — as will a recent crackdown on some of China’s largest technology companies. Pan Yue reports.

Hainan State Farms Investment Holdings Group Co debuted in the dollar market on Wednesday with a three year bond.

Chinese property company Kaisa Group Holdings raised $200m from a rapid return to the debt market this week.

The Hong Kong government cemented its green credentials further this week with a $2.5bn triple-tranche bond outing.

China Education Group Holdings sealed a HK$2.03bn ($261.3m) top-up placement this week, raising capital for the expansion of its school network. But its stock took a hit in the aftermarket, dropping more than 10%.

Chinese domestic bonds plummeted on Tuesday and continued their fall on Wednesday morning, amid growing concerns around recent tight liquidity conditions onshore and a potential tightening in monetary policy.

More Chinese real estate borrowers headed to the dollar bond market on Tuesday, as bankers tackle a supply rush in the lead up to the Chinese New Year holidays in mid-February.

Hong Kong-listed Sun Hung Kai Properties has returned to the loan market for a HK$5bn ($645m) club deal. It is testing lender appetite at a time of growing selectiveness around the sector.