Greater China

JP Morgan has hired former UBS banker David Xu to lead onshore equities as it readies the launch of its Mainland securities joint venture.

Chinese securities houses and banks have suffered a rough two weeks that have hit their funding conditions. A lawsuit from China Merchants Bank (CMB) against Everbright Capital has brought even more worry to a market still recovering from the panic caused by Baoshang Bank’s takeover.

Chinese higher education provider Edvantage Group Holdings has begun pre-deal investor education for its Hong Kong IPO, according to a source familiar with the matter.

Chinese online tutoring company GSX Techedu has raised $207.9m after pricing its US listing at the mid-point of guidance, according to a source familiar with the matter.

Investors piled into Guangdong Energy Group’s inaugural offshore bond issue, allowing the single-A rated power supplier to price the trade from an over eight times covered order book.

Dongfeng Nissan sold its 13th Chinese auto loan ABS, a Rmb4.3bn ($621m) three-tranche note, on June 13. Both senior tranches were priced 25bp higher than the issuer's previous deal.

Ping An Insurance (Group) Co of China raised $400m from a bond sold through its real estate business on Tuesday. While the deal carried the weight of the Ping An name, the issuer’s aggressive pricing strategy scared some investors off.

Warburg Pincus-backed logistics manager ESR Cayman opened books on Wednesday for what will be the biggest float in Hong Kong so far this year.

Huatai Securities, the Chinese brokerage, has revived its plan to sell $500m of global depositary receipts (GDRs) on the London Stock Exchange, having postponed the deal last year due to regulatory uncertainties.

A combination of the takeover of Baoshang Bank and the escalating trade war muffled the Chinese bond market and increased smaller banks and corporations’ funding costs. Meanwhile, the People’s Bank of China (PBoC) has injected record highs of liquidity into the bank bond market.

The surprise takeover of troubled Baoshang Bank, together with the resignation of Bank of Jinzhou’s auditor, is a wake-up call for a market that had enjoyed a rosy outlook.

Rabobank’s Adam Wotton is set to move to HSBC’s leveraged and acquisition finance team as a director.