Greater China

Asia’s desolate equity capital markets are about to be tested with new listings for the first time since Goodbaby China Holdings pulled a Hong Kong IPO in early February. But with bankers finding it harder than ever to convince investors to buy deals, little can be done in the primary market until some stability returns, write Jonathan Breen and John Loh.

China Huarong Asset Management has hired Richard Zhang in the newly created role of investment director to lead and oversee investment, with a focus on expanding the asset manager's offshore allocation.

Chinese authorities are set to announce a third batch of free trade zones (FTZs) this year with the preference likely falling on Western provinces. Meanwhile, the regulators have laid out more plans for the original pilot in Shanghai, aiming for the city to become the first to test full liberalisation of the capital account.

Syngenta will imminently launch into syndication its European non-recourse loan for its acquisition by ChemChina, according to a banker familiar with the deal.

Pirelli will not refinance its €6.8bn acquisition bridge loan in the bond market as planned. A torpid high yield bond market has spooked the borrower away from capital markets and back to bank loans.

The People’s Bank of China (PBoC) has flung open the doors to China’s bond market by allowing almost all types of foreign financial institutions and asset managers to directly invest in the onshore inter-bank bond market without a quota. The move is a positive one for capital markets liberalisation but leaves a question mark over the future of schemes like QFII and RQFII.

Nasdaq-listed Jumei International Holding is planning to finance its proposed take private transaction with a combination of loans and equity.

Export-Import Bank of Korea (Kexim) opened books on Wednesday for a single tranche dollar bond to be dual listed in Singapore and Taiwan. While the Korean issuer has taken this approach before in offshore renminbi, sources close to the latest deal say this is the first of its kind in dollars.

Bank of China Hong Kong sneaked in to the bond market on Tuesday with a triple-tranche dollar deal in the midst of several other well flagged competing transactions. But the Chinese lender raised a hefty $2bn, which bankers said proved that it is one of the strongest credits in the region.

Hong Kong Broadband Network has hit the syndicated loan market for HK$700m ($90m) to fund its acquisition of telecom businesses Concord Ideas and Simple Click Investments.

Far East Consortium International has sealed a HK$1.35bn ($174m) three year loan, with the proceeds to go towards redeeming an outstanding renminbi bond and for general working capital.

Chinese logistics firm ZTO Express has sent out a request for proposals for an IPO that could raise as much as $1bn, according to sources.