Greater China

Investors went crazy for WuXi Biologics’ HK$3.9bn ($500.4m) Hong Kong IPO, driving pricing to the top of expectations as hundreds of global accounts poured in.

There was not enough stock to go around when TPG Stallion sold the last of its equity in Li Ning Co this week. The HK$885.2m ($113.6m) fundraising not only priced at a small discount but also gained nearly 10% in secondary.

Chinese issuers Far East Horizon and Power Construction Corporation of China sealed perpetual non-call five year deals on Wednesday, feeding investor appetite for yield from high quality names.

The combination of One Belt One Road (OBOR) and Bond Connect will allow the renminbi to be used more widely as an investment and reserve currency, presenting a breakthrough for RMBi, said experts at the Hong Kong Exchange’s RMB fixed income and currency conference on Thursday.

Bond Connect will only provide northbound trading for the next few years, Charles Li, chief executive of the Hong Kong Exchange, has said.

Hong Kong’s FWD Group and AMTD Group Company have started taking orders for their respective unrated perpetual bonds. The former is seeking a zero coupon subordinated deal, while the latter is marketing a senior transaction — its second international offering.

Chinese high yield company Hilong Holding has mandated banks for a dollar bond.

Chinese developer Fantasia Holdings Group Co wrapped up an unrated short-term note on Tuesday, snapping up $350m for refinancing. Bonds with maturities of less than a year are increasingly being considered by Mainland issuers, given the barriers in getting regulatory approval to go offshore for fundraising.

Chinese property developer Kaisa Group Holdings is looking to launch an exchange offer, swapping a series of variable rate senior bonds for new fixed rate notes.

Two Hong Kong-listed firms sold new equity on Tuesday via block trades at double-digit discounts, as Jiayuan International Group and Grand Baoxin Auto Group raised a combined HK$2.2bn ($277.1m).

HSBC and Morgan Stanley have adjusted their forecasts for the onshore renminbi (CNY), projecting a stronger-than-expected currency by the end of 2017. Analysts say the RMB’s strength could prompt China to allow for greater two-way volatility and further open its domestic market.

China Everbright Bank’s Hong Kong branch grabbed $500m on Tuesday from its three year floating rate note offering, riding on the success of its past transactions, said bankers.