Greater China

Chinese and Hong Kong authorities have finally agreed on a December 5 launch date for the Shenzhen-Hong Kong Stock Connect — just over two years after the launch of the Shanghai Connect. Here is GlobalRMB’s lowdown on what you need to know about the upcoming initiative.

In this Monday round-up, Shenzhen gets connected, the RMB stabilises and China capital outflows in the spotlight.

Fitch believes the Chinese covered bond market could prove a viable new source of funding for its banks, but suggests that a legal framework would offer a more sustainable approach for the development of the market.

The Shanghai branch of the People’s Bank of China published today a comprehensive list of foreign entities that have obtained direct access to the China interbank bond market (CIBM).

AirAsia is planning two IPOs, one of which will package stakes in all its southeast Asian low cost carriers into a Hong Kong listing, the airline’s group CEO said.

Mutual market access (MMA) is about to be strengthened by the impending launch of Shenzhen-Hong Kong Stock Connect next month. While much of the focus has been on how access to China will improve, a report from brokerage firm Instinet argues that the real story lies in the internationalisation of Chinese money and how it is impacting trading patterns.

Hon Hai-owned Foxconn Interconnect Technology, also known as FIT Hon Teng, has put its IPO plans on hold until next year after getting poor feedback from investors.

Chinese local government financing vehicle Shaanxi Xixian New Area Fengxi New City Development and Construction (Group) Co tiptoed into the market on Thanksgiving Thursday, launching and pricing a new $120m deal by lunch time.

China Securities Finance Co is poised to be the fourth brokerage to raise about $1bn in a Hong Kong IPO this year when it launches on Monday, having set terms for the trade.

Oil trading and bunkering business Winson Group has wrapped up syndication of a $90m one year revolving credit facility.

In this round-up, the People’s Bank of China (PBoC) sets the dollar-renminbi fix at a new record low, a new policy push for the Shanghai free trade zone (FTZ), and the China Securities Regulatory Commission appoints two new RMB qualified foreign institutional investors (RQFII). Plus, a recap of our coverage this week.

Tsinghua Unigroup made its debut in the loan market with a $300m facility this week. The early signs for the deal are positive, thanks to the sector’s sunny outlook. More business from Chinese firms in the IT equipment industry is expected as they need capital to cater to the growing demand for their products and for investments overseas. Shruti Chaturvedi reports.