Greater China

HNA Group’s Hong Kong subsidiary, CWT International, appeared to default on a secured Hong Kong dollar loan on Wednesday. Although the company has had debt problems in the past year, many bankers were still surprised by the default and said more thorough background checks will be carried out on Chinese borrowers in future. Pan Yue reports.

Mercedes-Benz Auto Finance is on track to price its largest ABS trade under the Silver Arrow China series. The originator, having previously turned to Moody’s and Fitch for international ratings, switched to S&P and gained an AAA rating for its deal.

Industrial and Commercial Bank of China raked in the equivalent of more than $2.2bn on Tuesday across four tranches of notes in three different currencies.

China Construction Bank is looking to close its Rmb10.25bn ($1.53bn) Jianyuan 2019-2 residential mortgage backed securities transaction next week. The deal has an AAA international rating from S&P.

Two subsidiaries of Taiwan’s Formosa Plastics Corp are in the syndicated loan market raising a China onshore facility and an offshore deal respectively.

FTSE Russell is reviewing China for a potential upgrade under its framework for index eligibility, opening the door for onshore bonds’ inclusion in the FTSE World Government Bond Index (WGBI).

I was young and handsome when I married Tai Tai. I’m still handsome, she says, but time has curdled my youth to wisdom (and wealth).

Hutchison China MediTech sparked life into the Hong Kong biotechnology IPO market this week, filing a draft prospectus for a $500m listing with the city’s stock exchange. The globally known name — already listed on two foreign exchanges — is a boost for biotech investors, who have been drip-fed smaller start-ups since Hong Kong allowed pre-revenue companies from the sector to begin listing last year. Jonathan Breen reports.

The Shanghai Stock Exchange (SSE) has published guidelines for companies looking to list on its new Science and Technology Innovation Board, as well as underwriters, including an unusual requirement for the sponsors of initial public offerings (IPOs) to commit to deals.

CWT International, a Hong Kong-listed subsidiary of cash-strapped HNA Group, has defaulted on a HK$1.4bn ($179m) loan.

Three Chinese property companies raised a combined $1.625bn from international bond sales on Monday, continuing the flow of high yield paper into the offshore market.

Credit Suisse will increase its stake in Credit Suisse Founder Securities (CSFS), the firm it owns as a joint venture with Founder Securities, to 51%, making it the latest foreign bank to take a majority holding in its China JV.