Greater China

Short-end CNY swaps have been well offered on yuan strength and weak Chinese data today. Looking ahead, gradually improving risk sentiment is expected to back paying in mid-sector swaps and a steeper 1s/5s NDIRS curve slope, writes Deirdre Yeung of Total Derivatives.

The Republic of Korea has sent out a request for proposals for an offshore bond to be issued as early as this month.

China’s securitization market has disappointed this year with volumes so far failing to reach even half the Rmb500bn ($79.2bn) quota. But what the numbers don’t show is the amount of progress that has been made to develop the market — progress that will ensure a bright future for the asset class.

Volatility in futures and options markets for US grains has abated after data from the US Department for Agriculture indicated a potentially weaker harvest cycle.

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

Agricultural Bank of China (ABC) priced a landmark transaction this week, raising approximately $1bn from a dual-currency, triple-tranche bond. Not only was this China’s first financial green bond, but ABC was also the second bank from the country to sell notes in London in as many days, setting the stage for president Xi Jingping’s visit to the UK next week. Rev Hui reports.

CDB Leasing Co, an arm of China Development Bank, is planning to raise around $1bn via a Hong Kong IPO in the first half of 2016, with three banks expected to lead the transaction.

China Reinsurance’s HK$15.6bn ($2.01bn) listing in Hong Kong is multiple times covered, with the leads on the deal telling investors that pricing is expected in the upper half of guidance.

Australia and New Zealand Bank has appointed a new director to its loan syndications team in China.

Singapore and China have announced new initiatives to boost the internationalisation of renminbi (RMB) through the city-state.

China Water Affairs Group has picked one bank to arrange a $100m fundraising, hitting the loan market for the first time in more than a year.

The ability to accurately measure and rate risk is the key obstacle to the development of asset backed securities in China. This is because flawed measurements, produce flawed valuations, which in term infect the macro-economic environment, argues Ann Rutledge, founding principal of Credit Spectrum.