Greater China

MSCI has once again highlighted the inability for foreign investors to move money freely in and out of China as a reason for leaving A-shares out of its Emerging Market Index. While the world’s second largest economy has moved quickly to reform other parts of its financial sector, market participants are divided about whether China will budge on capital controls.

Taiwanese green technology firm Giga Solar Materials Corp raised $110m on Tuesday with its debut dollar convertible bond, its first visit to the equity-linked market in nearly two years.

MSCI’s decision to not include China A-shares into its Emerging Market index drew little reaction with both the currency and the major stock indices holding up well during Wednesday trading.

China’s efforts to meet MSCI’s demands for index inclusion proved to no avail with the firm rejecting A-shares for a third time. No doubt Beijing is miffed, but MSCI has good reasons to hold off for now.

Index firm MSCI said on June 14 that it was once again delaying the inclusion of Chinese A-shares in its emerging market index. Here is GlobalRMB's quick guide to what you need to know.

Chinese provincial government enterprise Yunnan Water Hong Kong Co has sailed in for a $150m three year loan with a greenshoe of the same size.

Index provider MSCI has surprised markets by once again delaying the inclusion of A-shares in its Emerging Markets index. While some progress has been made, China still has more work to do to tackle concerns around repatriation and restrictions on launching financial products linked to onshore exchanges, the firm said on June 14.

Recent allegations against Nomura about a syndicated loan that went bad has re-opened the debate on investment banks’ practice of minimal or zero holds versus commercial banks’ take-and-hold strategy. And the legal action initiated by Taiwanese banks shows there is a need for more transparency — even in secondary sell-downs.

China has registered the first foreign participant to its interbank bond market following its much publicised rule relaxation in February with UK asset manager Insight Investment first across the line on Monday.

Zhongrong International Trust has mandated banks for a Reg S dollar bond that could hit the market as early as this month.

Taiwan’s Giga Solar Materials has launched a $100m convertible bond with an option to increase the size by up to $25m.

Greentown Service Group is conducting investor education for its $150m-$200m IPO in Hong Kong until early next week.