Greater China

Chinese automobile dealer Zhongsheng Group Holdings has increased the size of its borrowing to $250m from the launch of $150m, raking in plenty of demand from lenders during general syndication. The borrower decided to diversify the set of currencies to include euros and Hong Kong dollars, as it wanted to limit its US dollar exposure in a depreciating renminbi environment.

The close trade links between Germany and China are the main driver for a promising German RMB market. Marcus Sehr, global head of institutional cash, global transaction banking, at Deutsche Bank, tells GlobalRMB that new trade transactions should be the real key to promote more local RMB use.

Kingboard Chemical Holdings is looking to increase the size of its loan to HK$6bn ($773m) from the launch size of HK$5bn, following robust demand from banks during general syndication.

Norton Rose Fulbright has boosted its Hong Kong team with a new hire, appointing Terence Lau as a corporate and equity capital markets partner.

In this round-up, China's cross border RMB trade settlement falls in July, Seoul plans to launch RMB/Won futures in October, Moscow Exchange sees growing CNY/Rouble spot and swaps turnover, China's central bank issued its yearly financial stability report, and the UK's foreign secretary said during a visit to China that London would keep supporting RMB internationalisation initiatives.

Tat Hong Holdings, a Singapore-listed supplier of heavy machinery, has picked Taiwan Stock Exchange as the venue for listing its tower crane rental businesses in China.

Dongfeng Nissan Auto Finance completed its return to the Chinese auto loan ABS market with a Rmb1.5bn ($242m) deal this week. Not only did the joint venture firm manage to get a bigger trade done, it also got far better pricing this time around than in its debut last year.

Everbright Securities Co has mandated seven banks to work on what would be the company’s first outing to the international bond market.

Widespread concern over China’s currency strategy put the brakes on European banks’ use of the dollar market this week, which began with a $7.5bn raid on the currency by four borrowers.

China’s devaluation of its currency has halted private medium term note business in offshore renminbi after it led to a plunge in the renminbi/dollar swap rate. But when the basis swap stabilises issuance will return just as soon as investors readjust their yield targets, say MTN bankers.

With China’s devaluation having brought rising uncertainty across global markets, volatility measures for many options on exchange traded funds have not kept pace with those that reference their underlying securities.

Back in 2010, Brazil’s finance minister Guido Mantega warned that the world was in the midst of a “currency war” in the wake of US quantitative easing. The term is now back in vogue after China made the shock decision to devalue its currency.