Haitong Securities

Chinese property company Landsea Green Group Co closed its $150m bond on Friday afternoon following a two day bookbuilding process.

Landsea Green Group Co, a Chinese property company, is taking orders for a green dollar bond for a second day, having started bookbuilding on Thursday morning local time.

Several Chinese real estate companies, including Sunac China Holdings and Central China Real Estate, took advantage of relatively stable markets to ride the dollar issuance momentum this week. But supply pressure meant that many saw their bonds then trade under water.

Chinese property developers are rushing to sell dollar bonds as momentum picks up and the market stabilises. While heavy supply is weighing on investors’ minds, their familiarity with the sector and issuers’ willingness to pay up may be able to safeguard the deals.

Chinese real estate companies Cifi Holdings Group Co and Fujian Yango Group Co rolled out three year dollar bonds on Thursday, paying investors hefty premiums to get their deals done.

Asian bond issuers drew mixed responses this week as they pushed out last minute deals before regulatory funding quotas expire at the end of the month. As new issue premium demands and small fundraising sizes continue to hinder borrowers, attention has turned to whether the forthcoming holidays will bring a market reset. Morgan Davis reports.

Shandong Iron & Steel Group Co and a Chinese government-owned entity from Xuzhou both took a cautious approach to their dollar bonds on Thursday in a market that has become increasingly volatile.

Asia’s dollar bond issuers were back in the market on Thursday after taking a pause during the US Federal Open Market Committee meeting this week.

China’s Gangtai Group Co and Yango Group Co both sold bonds with 1.5 year tenors at the end of last week, catering to the Asian buy-side’s demand for short duration. Their transactions have raised expectations of more short-term issuance from high yield companies.

China’s Xinyuan Real Estate Co has sold a par-priced $200m deal, paying one of the highest coupons for a public dollar bond in Asia so far this year.

China Boqi Environmental Holdings has raised HK$605.2m ($77.2m) after pricing its IPO at the bottom of guidance, according to a source close to the deal.

Zhejiang Hengyi Group Co, a Chinese petrochemical company, was the second issuer to fall short in the international debt market this week, pulling its planned debut dollar bond on Thursday.