Greater China

Postal Savings Bank of China has narrowed the price range on its Hong Kong IPO to the bottom half of guidance, and is set to raise up to HK$58.8bn ($7.6bn) in the world’s biggest listing in two years.

A handful of issuers decided to turn to the bond market on Tuesday, looking for a crucial window just one day before the US Federal Reserve makes its decision on the trajectory of interest rates.

China is stockpiling gold as an alternate way to support the internationalisation of the renminbi, according to the findings of a China International Capital Corp (CICC) research report last week.

Veolia Environnement priced its debut Panda bond on September 1, becoming the first French issuer to tap the onshore Chinese market. The firm was also one of the first corporates to be allowed to repatriate funds out of China despite ongoing capital controls, its treasurer told GlobalRMB.

Gold One Group, which produces low-cost gold in South Africa and is part of the Citic Group, is laying the groundwork for a Hong Kong listing with a preliminary filing.

Honma Golf has started taking orders for its HK$1.5bn ($193.3m) listing, while China Merchants Securities Co is set to kick off its IPO next week.

Jiangsu Fang Yang Group is set to become the latest Chinese local government financing vehicle to issue a dollar-denominated bond, picking banks to arrange the offering.

Three Hong Kong real estate investment trusts are tapping the loan market for funds, with DBS launching two new deals and Hang Seng Bank wrapping up a third transaction, bankers said.

Hong Kong-based WeLab is set to dip its toes in the Asian syndicated loans market for a $50m borrowing, potentially fuelling a trend of fintech start-up lenders hitting the wholesale market for funds.

Postal Savings Bank of China and its potential HK$62.7bn ($8.1bn) IPO got off to a roaring start due to hedge fund demand. Oversubscribed on day one, it is on track to be the world’s largest IPO in two years. But an order book so far dominated by regional names is about to get a lot more global as management leaves Hong Kong for roadshows in the UK and US. Jonathan Breen reports.

Hon Hai Precision Industry sealed $1bn from a dual-tranche offering, seizing what is thought to be the last good window before the Fed’s decision on a September rate hike.

In this round-up, China is keen to expand FTZ sphere, yield differential continues to narrow between offshore and onshore bonds, and London reiterates desire to promote RMB internationalisation. Plus, a recap of our coverage this week.