Greater China

SAIC-GMAC Automotive Finance has made a rapid return to the China auto ABS market with its second deal of 2017. This time around, the firm opted for four tranches with its Rmb4bn ($580m) Rongteng 2017-2 Retail Auto Mortgage Loan Securitization.

Chinese digital map provider NavInfo has signed a €110m loan to fund its acquisition of a stake in a European company.

Moody's downgraded China's credit rating on Wednesday morning. Short swaps were well bid and the curve flattened as an initial response. However, sources expect risk sentiment to weather the storm and the recent curve steepening trend to extend, writes Deirdre Yeung of Total Derivatives.

China National Chemical Corp (ChemChina) opened books for a senior perpetual non call five bond on Wednesday morning, hitting the market soon after Moody’s downgraded the country’s rating.

The upcoming Bond Connect could open up more hedging tools beyond FX for investors in RMB-denominated assets. However, experts warn the additional scheme will create fresh issues for investors that have already accessed China via older systems — unless the regulators take further harmonisation steps.

Market participants are preparing for a July 1 launch of the Bond Connect, with details slowly emerging on the scheme’s features. Meanwhile, banks are also expecting a June 25 announcement on which institutions will act as Bond Connect market makers, GlobalRMB has learned.

Chinese loan banks are appearing in more and more emerging market loan deals this year, as they race towards the loan market big league, but while their hunger for market share is evident, they're still taking a conservative approach.

Germany's Daimler has rapidly returned to the Panda bond market, pricing a dual-trancher last week. Its deal was followed by China Power New Energy Development Company (CPNE)’s debut green Panda, a rarity in the renminbi market.

Property developer Nan Fung International Holdings became the third Hong Kong issuer to sell a fixed-for-life perpetual in just a little over a week. But unlike the earlier transactions, private banks rather than fund managers dominated its deal.

Iron and steel company Metallurgical Corporation of China raised $500m from the sale of its three year bond on Monday, after enthusiastic investors flocked to the deal.

Beijing Gas Group Company and China Construction Bank (Hong Kong) have opened books for a fixed five year bullet and a three year floater, respectively.

China’s Putian Communication Group is vying for approval to list in Hong Kong, according to a draft prospectus filed with the city’s exchange on Monday.