Greater China

Softer markets caught Central China Real Estate off guard this week, with the leads forced to increase pricing after launch to get its deal away. The deal highlights a shift in pricing for high yield property developers at a time when supply is set to increase, writes Addison Gong.

China’s Huishang Bank Corp rolled out its inaugural dollar-denominated additional tier one bond on Thursday, the first from a city commercial bank in the country.

National Bank of Canada became the first North American lender to sell a Panda bond on Wednesday, raising Rmb3.5bn ($517m) from a three year note. What stood out, however, was not the deal execution but how the lender managed to convince the regulators that the sale aligns with China’s Belt and Road initiative.

Chinese property issuers have stormed the international debt market recently, making a big comeback after months of relying on domestic bond fundraisings. But with the offshore market softening and the outlook around the sector cooling, high yield issuers should be prepared for a bumpy ride.

Banks and corporates in the US are increasingly interested in understanding the opportunities in renminbi, but they need to lose their addiction to the US dollar. The catalyst is likely to come from market trailblazers and improved infrastructure.

Bank of China's received on Wednesday a provisional rating for its green secured bonds and leads have set initial price thoughts.

Guangdong Kanghua Healthcare Co priced its Hong Kong IPO at the bottom of expectations on Tuesday, as bankers blamed the poor aftermarket of recent listings for weighing on investor sentiment.

Central China Real Estate wrapped up an unconventional two-day bookbuilding for its new bond on Tuesday. Investors had turned their backs to the original aggressive pricing, forcing the leads to price the deal 75bp higher than the initial guidance.

GDS Holdings received a thumping response from investors for its $192.5m Nasdaq IPO, but priced it below the initial range to capture long-only demand and a higher-quality book.

Hydropower firm China Yangtze Power Co launched a dual currency exchangeable bond on Wednesday evening, looking to fetch $521.8m, according to a termsheet seen by GlobalCapital Asia.

Wuhan Metro Group and Jiangsu Zhongguancun Science Park Holding Group added their names to the growing list of Chinese local government financing vehicles (LGFVs) sealing inaugural dollar bonds in the international market this year.

Credit Suisse launched its onshore brokerage business in China on Wednesday, placing it among a handful of global banks that have securities trading operations in the Mainland.