Greater China

A ground-breaking and long-awaited mutual fund recognition scheme between China and Hong Kong is set to launch on July 1, with an overall quota of Rmb600bn ($48.4bn) split equally between the two channels.

The latest move to liberalise China's markets has improved risk appetite and backed paying interest in CNY swaps. Early steepening in the 1s/5s slope has pushed payers down the curve from five years to the three year tenor, writes Deirdre Yeung of Total Derivatives.

China Development Bank (CDB) is planning to bring its debut Formosa bond in the third quarter of 2015, in a deal that could help transform Taiwan's RMB market by injecting longer tenors and exposure to an onshore China bank credit.

Chinese broker Southwest Securities became the latest offshore renminbi (CNH) issuer to take advantage of abundant liquidity in the market when it sold a three year dim sum bond on May 21. The unrated debutant achieved its targeted aims in terms of pricing and size.

Structured medium term notes denominated in renminbi could be set to take off as cuts in interest rates drive Chinese investors to look for a way to boost returns.

The offshore renminbi (CNH) bond market this week welcomed its first deals in almost a month, including a mammoth sale by the Chinese government. Bankers are now expecting momentum in the sector to finally pick up as conditions become more favourable for issuers, writes Narae Kim.

Chinese broker Southwest Securities started receiving bids for a three year dim sum bond on May 21 as it tries to tap the international market for the first time.

The opposite extremes of the yield curve saw the keenest pricing in this week's Rmb14bn ($2.3bn) dim sum auction from China's ministry of finance (MoF) on Wednesday morning. But the seven and 10 year tranches were seen at or wider than secondary, reflecting an ultra-flat part of the curve that offered less interest than longer dated paper.

China is set to welcome its first green bond, picking a bank to sell the offshore issue, according to a panellist at the Euromoney Conferences China Debt Capital Markets Summit.

China's Ministry of Finance (MoF) has wrapped up its Rmb14bn ($2.3bn) auction of offshore renminbi government bonds in Hong Kong, with the deal about three times covered.

Zhengzhou Yutong Group has opened books for a three year dim sum bond, having opted to add the credit enhancement of a standby letter of credit for its first transaction in the offshore renminbi (CNH) debt market.

Analysts are expecting a very strong reception to today's auction of offshore renminbi China government bonds (CGBs) by the Chinese Ministry of Finance. The result of the auction, which sees some Rmb14bn ($2.3bn) of bonds offered across six tenors, will be announced by 5pm Hong Kong time.