Greater China

Foreign credit rating agencies are finally welcome to operate in China without a local partner, the People's Bank of China confirmed this week. But although the change is likely to improve the transparency of the country's corporate bond market, experts have warned that it could pose risks to the wider economy.

The People’s Bank of China nearly doubled Hong Kong’s renminbi qualified foreign institutional investor (RQFII) quotas on June 5. Market participants say the move will meet growing demand for RMB assets following MSCI’s inclusion of A-shares.

Leads on FIT Hon Teng’s HK$2.8bn ($358.6m) IPO have wrapped up bookbuilding a day early in Asia and Europe after a strong showing from institutional investors, and are set to price the deal around the midpoint of the initial range.

China’s move to open up its domestic bond market to more foreign investment is being rightly applauded. But investors should be wary of the risks in a market that still has serious problems with governance and disclosure.

Metallurgical Corporation of China (MCC), China National Chemical Corporation and Thailand’s PTT Exploration and Production are out in the market, gauging appetite for their respective bonds.

Guangdong Hengjian Investment Holding raised $500m from its debut bond on Monday on the back of nearly six times demand. The issuer priced the notes inside its comparables, a feat possible thanks to its status as a provincial-level state-owned enterprise and a quiet primary market.

Bank of China Hong Kong became the latest bank to join a rush of floating rate issuance on Monday, closing a dual-tranche deal.

Huarong Investment Stock Corp has increased the size of its dual-currency syndicated loan to HK$3.6bn ($462m) from HK$3bn.

Mainland firm Hebei Construction Group is vying for approval to list in Hong Kong, filing a draft prospectus with the city’s exchange.

The further liberalisation of access to the China's bond market as a result of Bond Connect makes inclusion of onshore renminbi bonds in the world’s major bond indices more likely, with potential inflows in the billions of dollars, according to market analysts.

State-owned enterprise Qinghai Provincial Investment Group Co is making a rapid return to the international debt market, launching a new dollar bond on Tuesday about four months after its debut.

A $300m three year fundraising for pharmaceutical company China Medical System Holdings has entered general syndication with three banks at the helm.