Greater China

After some shocking first day flops in recent months, Hong Kong IPOs have become a nerve racking investment, and investors are responding by changing their approach to the city’s primary equity market. Investors have lost trust in their ability to assess an opportunity and are looking for reassurance from their peers, writes Jonathan Breen.

Repeat Chinese issuer Yuzhou Properties Company and debut credits Reward Science and Technology Industry Group Co and United Photovoltaics pushed into the busy Wednesday market, looking to close dollar deals before the holiday.

Hong Kong Exchange (HKEX) chief executive Charles Li laid out the exchange’s plans for 2017, with a strong focus on expanding its RMB offering through new products such as Chinese treasury bond futures and connectivity with China’s bond market.

The number of foreign entities with direct access to the China Interbank Bond Market (CIBM) has increased with Ontario Pension Board, T. Rowe Price International and Standard Chartered Singapore among the inductees.

Beijing Capital Group Co fought its way through an extremely crowded Asia primary market to garner more than $2.2bn in demand for its bond outing.

China is looking to broaden the financing options of foreign firms by allowing them to list onshore and sell corporate bonds, the State Council said.

Zhuhai Huafa Group Co on Thursday morning opened books for its debut dollar-denominated offering. Howver, the company is no stranger to offshore markets as it has previously sold a dim sum bond.

The Japanese bank has named former Standard Chartered senior banker Pramod Shenoi to the newly created role of head of DCM, FIG for Asia ex-Japan.

In the third and final part of our outlook on RMB internationalisation, industry experts address how the recent capital controls affect the diversification drive by Chinese investors, and how infrastructure upgrades, such as the prospect of 24-hour trading capabilities, could provide a much-needed to boost the RMB's global role.

Donald Trump could end up being China’s best friend following his comments this week that the dollar is too strong. If the US president elect decides to engineer a weaker dollar, it would help solve China’s most imminent issue — capital outflows.

Despite the PBoC having injected a record amount of funds into China's financial system this week, liquidity concerns are rising ahead of the Chinese New Year break. The fixings pushed higher and shorter NDIRS were well bid on Wednesday morning. Looking forward though sources see limited scope for further upside, writes Deirdre Yeung of Total Derivatives.

China Development Bank priced a mammoth five tranche deal Tuesday, raising more than $4bn across three dollar and two euro tranches, making it the first Chinese name to issue a euro deal this year.