Greater China

Chinese local government financing vehicle (LGFV) bonds are making a comeback in both the primary and secondary markets offshore, as the government suggests a shift in priorities from deleveraging to maintaining economic growth. But will the rally last — and for how long? Addison Gong reports.

As Asian exchanges increasingly embrace the US model for new listings — the introduction of variable voting rights being a case in point — disintermediated IPOs may perhaps soon be the next fad, writes Clawback.

KWG Group Holdings raised $350m from a three non call two year bond on Tuesday, but an aggressive tightening of 32.5bp resulted in the order book dropping by half from its peak.

China Mengniu Dairy Co found exceptional support from European investors for its $500m refinancing exercise on Tuesday.

Bond index providers are racing to include Chinese bonds in their benchmarks. But before taking the leap, they should study a recent decision on A-share inclusion — and the sceptical response it got from investors.

The Schuldschein market's heavy reliance on car industry borrowers means the prospects of trade wars affecting the sector are worrying investors and arrangers alike.

State-owned China Merchants Port Holdings Co (CMP) closed a $1.5bn dual-tranche transaction on Monday, attracting a final order book of $8bn. The deal put an end to a months-long drought of 10 year supply by Chinese issuers.

Taiwan Cement Corp has raised $549m from an overnight Global Depositary Shares sale after exercising part of the greenshoe and pricing at the low end.

State-owned China National Building Material has kicked off its debut syndication through three bookrunners, seeking $160m from the fundraising.

Bank of China Macau branch is providing a $700m loan to back Chinese alternative asset management firm CDH Investment’s acquisition of Sirtex Medical, according to a source close to the situation.

When China Tower launched its Hong Kong IPO last week, it abandoned a long tradition of state-owned enterprises relying on cornerstone tranches for a major chunk of distribution. It was a bold move. Later this week, we will know whether it was a smart one.

BeiGene had covered books for its HK$7.3bn ($933m) IPO in Hong Kong by Tuesday morning, just two days after the deal hit screens.