Greater China

This year Chinese securitization has struggled to continue the momentum it showed at the end of 2014, failing to come close to the increased Rmb500bn ($82bn) quota from regulators. While there is more than one reason behind why issuance has been slow, market participants are still confident the budding asset class will come good by the end of the year.

Ever since China started its securitization market a decade ago, there has been a lot of talk about the vast potential for the product. And while it’s true that securitization has been developing strongly, the country’s true potential lies in the still mostly untapped residential mortgage-backed security (RMBS) sector.

Beijing Capital Juda last week priced its first bond, raising Rmb1.3bn ($209m) from an oversubscribed three year deal that saw investors eager to gobble up a dim sum trade.

Central China Securities Co wrapped up its HK$2.53bn ($327m) placement on July 24, allowing its shares to resume trading on July 27 after what had turned out to be a longer-than-usual bookbuilding process.

Chinese equities sent jaws dropping again this week after Shanghai posted its sharpest one-day plunge in eight years. While the market quickly picked itself up, equity capital market bankers believe this seesaw action is a huge incentive for mainland investors seeking a haven in Hong Kong, writes John Loh.

China Merchants Holdings (International) became the third Chinese issuer in less than a week to access the international bond market with a dual-tranche offering split between five and 10 year bonds on July 27. The identical structures and close proximity of the deals meant it was more or less the same result for the Chinese conglomerate.

China Modern Dairy has increased the size of its second overseas syndicated loan to $300m from a launch size of $150m, after two dozen retail lenders joined in general. The loan attracted lenders from Taiwan, China, Hong Kong, Japan, Indonesia, India and Korea.

Ever since China started its securitization market a decade ago, there has been a copious amount of talk about the vast potential for the product. While it’s true that securitization has been developing strongly, the country’s true potential lies in the yet mostly untapped residential mortgage-backed security (RMBS) sector.

Tingyi (Cayman Island) Holding Corp is making its inaugural appearance in the offshore renminbi (CNH) bond market on July 30, taking bids for a three year Reg S trade.

Jing Zhang Brogle has been appointed CEO of the Hong Kong arm of Edmond de Rothschild Group. She moves to the bank with 14 years of experience in private banking and asset management.

Problems in Chinese and emerging market economies have become the biggest fear for credit investors for the rest of 2015, according to Bank of America Merrill Lynch’s July Credit Investor Survey – having not featured at all as a concern in the bank’s May poll.

Chinese company Minsheng Financial Leasing has rolled out a $200m fundraising with two mandated lead arrangers and bookrunners. The deal follows an onshore facility being raised by the same borrower.