Greater China

Hong Kong’s stock exchange took a progressive step in 2018 when it allowed pre-revenue biotechnology companies to list. But the initial excitement was short lived, with the stocks’ dismal performance in the aftermarket denting sentiment among issuers, bankers and investors. Will the tide turn for the sector this year? Jonathan Breen investigates.

Chinese online travel agent Ctrip.com International has launched its first offshore deal, for €600m, two years after raising a larger onshore facility.

Hong Kong’s Konew International Group has debuted in the offshore loans market, raising $150m.

Chinese streaming platform iQiyi, which is backed by internet giant Baidu, tapped the equity-linked market this week with a record-breaking deal — the largest American Depository Shares (ADS) convertible bond — and could help boost issuance in the asset class. Jonathan Breen reports.

Four Chinese sub-investment grade yield issuers, mostly property developers, stormed the offshore bond market on Wednesday, allowing yield-starved investors to pile in with orders.

Real estate developer China Vanke Co has raised HK$7.81bn ($994.3m) from a placement of new shares, its second tap of the Hong Kong market.

Chinese streaming platform iQiyi bagged $1.05bn on Tuesday after tapping the equity-linked bond market for a second time, pricing the deal at the issuer-friendly end of guidance.

Chinese pharmaceuticals company WuXi Biologics has launched a debut offshore loan of $200m through sole lead Standard Chartered.

South African mining company Heaven-Sent Gold Group is planning a Hong Kong IPO, having filed a draft prospectus through sole sponsor CLSA on Tuesday.

JP Morgan has appointed Paul Uren to replace the outgoing co-head of global investment banking coverage for Asia Pacific, according to an internal memo seen by GlobalCapital Asia.

China seems ready to cut coal from what is acceptable to fund under its green bond standards, caving to the demands of sustainable investing experts. This about-face is a big and positive move for global green financing efforts, but raises questions about global green standards and how the market frames discussions about what is ‘green’.

Last week’s tap of a KWG Group Holdings dollar bond triggered a debate between bankers about what makes for good market practice. The issuer may be an established and reputable one, but the tap was priced with the borrower still in an earnings blackout. If this sort of timing were to take hold, the Asian issuers as a whole will struggle to build a globally diversified investor base.