Greater China

Premier Li Keqiang's blessing for a China-Hong Kong Bond Connect scheme is a boost for the accessibility of Chinese bonds. But market participants are looking for clarity on issues across FX, settlement and registration requirements to determine its likely impact and appeal.

The Hong Kong Exchange is set to introduce five year China Ministry of Finance Treasury bond futures.

Investment grade Chinese issuers are lowering their costs of funding in the euro bond market as the region’s liquidity improves, while the door also remains open to high yield issuers with operations in Europe, according to panellists speaking at the China DCM summit in Beijing last Thursday.

Shenzhen-listed Zhejiang Dahua Technology Co, with a market value of some $7bn, is planning to list in Hong Kong.

Property developer China Evergrande Group sold another $1bn bond last Friday, hitting the market just a week after a bigger $1.5bn outing.

Renminbi denominated gold futures contracts will be available on Hong Kong Stock Exchange (HKEX) for the first time in June 2017, Charles Li, the bourse’s CEO, said on Monday. Li also signalled that more Connect schemes will emerge after Bond Connect, and that southbound volumes have plenty of room to grow.

High-end solar panel maker REC Solar has approached lenders in Asia for the first time, as it looks to raise up to $330m.

China Renaissance Group and ICBC International Holdings this week unveiled a partnership to provide financial services across mainland China, Hong Kong and the US.

Guotai Junan Securities Co has hit the road with its HK$16.5bn ($2.1bn) IPO, set to be the largest listing in Hong Kong since Postal Savings Bank of China’s mammoth HK$58bn float last year.

Chinese issuers Fujian Yango Group and Tewoo Group Co, alongside Fullerton Healthcare Corp from Singapore, are wooing investors for their respective dollar bonds with roadshows set to take place this week.

KEB Hana Bank and Huantaihu International Investment Co ventured out to the dollar debt market on Monday morning, as 10 year US treasury yields slid to 2.37%.

JP Morgan’s head of ECM for Asia ex-Japan David Suen has left after close to a decade with the US bank, according to an internal memo seen by GlobalCapital Asia.