Greater China

The migration of Chinese property developers from the offshore bond market back to the domestic market is gaining steam, with another three issuing in the Mainland this week.

In this round-up, Moscow Exchange sees drop in RMB swap and spot trading in September, RMB denominated trade settlement reaches new record in Q3 2015, Taiwan RMB deposits see slight fall in September, HKEx plans launch of new RMB metal contracts, and BAML finds investor sentiment improved on China.

Members of the Asian structured finance community came together this week to attend a conference hosted by the Asia Securities Industry & Financial Markets (Asifma). Unsurprisingly, most of the talk hovered around China and the huge potential of its ABS market.

HSBC has rejigged its debt syndicate team in Hong Kong, relocating Agustin Gargallo from New York. The change comes at the same time that Edward Morgan, part of the firm’s syndicate team in Hong Kong, is leaving the bank.

Asia ex-Japan’s morose equity-linked market is poised for a shake-up after China’s National Development and Reform Commission (NDRC) overhauled its rules for foreign debt sales, allowing H-share issuers to dive back into convertible bonds.

Australia and New Zealand Bank and Crédit Agricole have beefed up their respective Asian loans teams with new appointments.

BoC Aviation has notched up a new landmark for Asia by becoming the first issuer from the region to sell an aircraft leasing ABS. Market observers are buoyed by the landmark transaction and hope it will spur similar deals from Asia and particularly China, writes Rev Hui.

The next stage of RMB internationalisation needs to focus on improving the connectivity between the onshore and offshore market to improve liquidity. This could be done encouraging more foreign entities to raise funds through Panda bonds and providing more offshore investment routes for onshore RMB, says Zhang Weiwu, general manager of ICBC Singapore, to GlobalRMB.

Beijing Environment Sanitation Engineering Group Co (BESG) has mandated banks ahead of launching a roadshow next week in Asia and Europe.

BoC Aviation has swooped into the syndicated loan market for a $300m unsecured transaction, launching the deal with four banks at the top.

China Huarong Asset Management launched its HK$19.6bn ($2.52bn) IPO on Thursday, with the deal off to a good start thanks to cornerstone investors.

Activity in Asia’s secondary loan market has picked up over the past few months as banks seek to manage their portfolios more efficiently. This is attracting intermediaries such as fixed income specialist SC Lowy, which has set up a par loan trading business in the region. But while there are opportunities, there are also plenty of challenges holding back growth in the nascent market, writes Shruti Chaturvedi.