Greater China

China’s attempts to allow markets forces to play a bigger role in the currency seemed to have backfired this week with both the onshore RMB (CNY) and its offshore (CNH) counterpart experiencing a tumultuous ride. Further depreciation is expected but the big unknown remains how policy makers will act.

Jiangsu Hansoh Pharmaceutical Co and Simcere Pharmaceutical Group are looking to raise a combined $2.5bn from Hong Kong IPOs that could launch in the first half of 2016.

In the first RMB round-up of 2016, Hong Kong RMB deposits and cross-border trade settlement recovered in November, RQFII programme added three new entities in December 2015, the Hong Kong and Singapore exchanges both saw strong futures trading volumes in December, ICBC managed nearly Rmb1tr in RMB-won trades, and Zimbabwe will make RMB one of its legal tenders this year. Plus, a recap of GlobalRMB’s top stories this week.

China’s onshore FX market has kicked off its new trading hours this week which allow for trading until 11.30pm. By while the regulator’s move is well intentioned, FX traders who are working the new night shift say the market faces some fundamental problems.

A former loans banker at HSBC has re-emerged in a senior role at Industrial and Commercial Bank of China (Asia).

Hsin Chong Construction Group is meeting fixed income investors to gauge interest for what would be its second dollar bond.

Options on Hong Kong-listed Chinese shares traded at one of the most expensive levels of relative value in recent history on Thursday as traders bid the premium for Hang Seng China Enterprises Index (HSCEI) contracts well above the recent realised volatility of the index.

China has suspended its new policy of using ‘circuit breakers’ to stop trading when its stockmarkets fall too fast, after a week when the market twice fell 7% and was shut down for the rest of the day.

Hungary will meet investors in Hong Kong and Singapore as it prepares to issue the first ever sovereign dim sum bond from the CEEMEA region.

Ronshine China Holdings has sealed Asia’s first IPO this year, pricing its HK$1.81bn ($233.5m) Hong Kong float at the bottom of guidance after a low turnout during bookbuilding.

China tested the limits of reform in its stock market this week with disastrous consequences. Equity markets fell globally after China heaved yet more volatility on investors, and mainland stocks saw their worst ever start to the year. The turmoil caught equity capital market bankers off guard, but panic has not set in yet, writes John Loh.

Loans bankers have traded in cautious optimism for realism this year, as weaker currencies and loosening monetary conditions across Asia are expected to weigh on demand for foreign currency debt. Even silver linings such as a potential pick-up in loan activity from India and increased outbound M&A will provide little respite, writes Shruti Chaturvedi.