Hong Kong SAR

In this week’s round-up, the Hong Kong Exchange’s USDCNH futures record their second best trading volume on Wednesday, renminbi deposits in Hong Kong increase by 4.1% in April, and China and Germany agree to co-operate on trade and finance.

Hong Kong’s FWD Group and Chinese leasing firm Far East Horizon are wooing investors for their respective perpetual deals, while Tunghsu Group Co is gauging interest for its debut international bond.

ESR Cayman sealed a $100m perpetual non-call three year on Wednesday, but the market remained a tad soft with investors being defensive when it came to risky names.

Investors threw their weight behind two IPOs in Asia this week, with WuXi Biologics set to price at the top of expectations in Hong Kong and Singapore’s HRnetGroup getting covered across the range.

Chinese automotive component supplier Xin Point Holdings started pre-marketing its Hong Kong IPO this week, and is eyeing up to $150m after getting a recent boost in confidence, according to a source close to the deal.

Hong Kong’s IPO market is awaiting jumbo deals from two Chinese state-owned enterprises this year, with Sinopec Marketing Co and China Tower seeking $10bn each. Both transactions are must-haves for ECM houses in the region, but getting a spot on the syndicate will be no easy feat. Jonathan Breen reports.

The offshore renminbi (CNH) reached its strongest point against the dollar since the start of the year on Thursday, despite China’s sovereign rating downgrade last week. Analysts say the sharp turn reflects Chinese regulators’ determination to keep the currency from falling ahead of renewed pressure from external factors.

WuXi Biologics is set to price its HK$3.9bn ($510.4m) IPO at the top of expectations following a blockbuster response from investors.

The People's Bank of China published the blueprint of the upcoming Bond Connect scheme on Wednesday, and has asked the public for feedback by June 7. The provisional rules shed light on themes including FX and hedging.

Chinese automotive component supplier Xin Point Holdings has begun investor education for its Hong Kong IPO and, after an early boost of confidence, is eyeing up to $150m, according to a source close to the deal.

Banks are competing for a position on the upcoming multi-billion-dollar IPO of China Tower Corp, the company responsible for the Mainland’s mobile phone towers, according to multiple ECM bankers in Hong Kong.

China’s FX market records Rmb11.38tr ($1.65tr) of transactions in April, the State Administration of Foreign Exchange releases more foreign investment quotas, and CFETS completes first options write-off in the interbank market.