Greater China

Renminbi internationalisation could soon be renamed renminbi digitalisation as the People’s Bank of China continues to make inroads to becoming the first major central bank to issue its own digital currency, according to a report from King & Wood Mallesons (KWM).

The offshore renminbi market is set for another year of pain with new issuance predicted to fall by as much as 30% in 2017, according to HSBC’s February dim sum tracker report.

Mason Financial Holdings has wrapped up a rights offering of more than 20bn new shares, raising HK$2.9bn ($373.9m) from the deal.

Bank of China concluded its first G3 outing of the year, pricing a $2bn triple tranche offering on Tuesday. Demand was particularly strong for a three year floating rate portion, which is now among the largest FRNs in the region.

China Grand Automotive is looking for a $591m equivalent syndicated loan facility, less than two months after it raised funds from the bond market.

UBS has a new head of technology, media and telecom (TMT) for Asia Pacific, hired from SMBC Nikko.

The PBoC skipped another reverse repo operation today, tightening liquidity conditions further. However lower fixings have supported better offers in swaps. Data-related receiving in 5-years has fuelled a corrective flattening move in the 1s/5s NDIRS slope after the curve made new highs earlier this week, writes Deirdre Yeung of Total Derivatives.

China Singyes Solar Technologies Holdings has become the latest energy name to venture out to the Asian debt market, taking bids for its debut dollar bond on Wednesday.

China Construction Bank (Europe) launched its new euro notes on Wednesday morning, becoming the third Chinese lender to hit the G3 debt market this week.

Vodafone has hired banks to arrange a 30 year US dollar Formosa bond, as corporate issuers get stuck into a market that has been teeming with bank trades this year.

The Brexit process and the further opening of the Chinese capital markets are pushing Luxembourg fund managers to sharpen their focus on China, Marc-Andre Bechet, director of legal and tax, Association of the Luxembourg Fund Industry (Alfi), told GlobalRMB.

The Hong Kong government is eyeing the week of February 20 to issue a new dollar sukuk, providing further momentum to Islamic financing since making its debut in the market more than two years ago.