Greater China

Equity capital markets bankers and investors are looking get stuck into deals after a quiet period last week as markets reacted to the spread of a virulent strain of coronavirus emanating from China.

Chinese stocks plummeted on Monday morning, the first trading day after the Lunar New Year holiday. The plunge came despite measures from the central bank and securities regulator to inject liquidity and ban short selling.

In this round-up, UBS expects China’s GDP growth to drop to 3.8% in the first quarter due to the outbreak of the novel coronavirus, Hong Kong banks shut branches to limit the virus spread and Chinese regulators step in with stablising measures for financial markets.

Devesh Ashra has left his position as co-head of Asia Pacific debt solutions at Bank of America in Hong Kong.

Hong Kong’s stock exchange has returned Chinese biotechnology firm Akeso’s listing application, a deal being sponsored by JP Morgan and Morgan Stanley.

Asian debt bankers had expected a peaceful week amid the Chinese New Year holidays, but rising concerns about the spread of the coronavirus this week led to a rush of emergency calls. Several borrowers have decided to skip or delay planned roadshow meetings in Hong Kong.

As financial markets fretted over the spread of a coronavirus outbreak in China this week, one security was in the firing line more directly than any other. Holders of the World Bank’s pandemic bond will lose principal if the disease spreads by a sufficient amount, writes Jasper Cox.

European equity capital markets’ buoyant start to the year ground to a halt this week as banks held back from doing deals over concerns about the outbreak of a deadly strain of coronavirus in China and how it may damage investor risk appetite. Losses in Asian markets, which are reopening following the Lunar New Year holiday, have compounded fears that global risk sentiment may be turning.

Citic Capital Acquisition Corp, a special purpose acquisition company (Spac), has filed for a $200m IPO. It is targeting companies in the energy efficiency, clean technology and sustainability sectors.

Peijia Medical and Shenzhen Hepalink Pharmaceutical Group Co have set the ball rolling for Hong Kong IPOs, having filed draft prospectuses with the city’s stock exchange.

China Aoyuan Group has closed a $230m-equivalent club loan with eight banks.

In this round-up, Chinese vice premier Han Zheng said China will further remove barriers of entry for foreign investment and lower its tariffs and Huawei’s chief financial officer Meng Wanzhou is still waiting for a ruling on her extradition to the United States.