Hong Kong SAR

China’s Shanghai Dasheng Agriculture Finance Technology Co is vying to raise as much as HK$975.0m ($125.7m) through a fresh placement of H-shares, but first needs the OK from its shareholders.

Despite a slight delay to its usual schedule, the Chinese Ministry of Finance (MoF) announced it will be auctioning Rmb10bn ($1.44bn) to institutional investors and an additional Rmb4bn to retail and central bank segments in the second batch of offshore renminbi (CNH) bonds in Hong Kong on December 8.

The week begins with the long-awaited launch of the Shenzhen-Hong Kong Stock Connect, while in the foreign exchange (FX) markets the RMB volatility led to a new record in RMB futures traded on the Singapore Exchange in November.

In this round, up, cross-border RMB trade settlement falls further in Hong Kong, the RMB qualified foreign institutional investor (RQFII) scheme adds the first Thai asset manager, and the Hong Kong Exchange confirms the final list of stocks available through Shenzhen Connect from December 5. Plus, a recap of our weekly coverage.

Citic Resources Holdings signed a $310m three year self-arranged term loan on Thursday, with five banks joining the trade.

Lifestyle International, which operates the Sogo department stores, is believed to be talking to relationship banks for a loan related to its acquisition of a plot of land in Hong Kong. But the company’s downgrade by Fitch and the possibility of similar action by Moody’s could make things harder at the negotiating table, writes Shruti Chaturvedi.

Hong Kong and overseas investors will be exempted from capital gains tax when they trade A-shares via the upcoming Shenzhen-HK Stock Connect, in-line with what is already in place for Shanghai Connect.

Financial services firm Enerchina Holdings is planning a rights issue with a view to raising up to HK$941.6m ($121.4m).

IPOs in Hong Kong this year have been dominated by friends and family investors or throttled by cornerstone accounts. But the appearance of technology company Meitu could be the deal the market needs to attract foreign investors, so it can’t be allowed to slip into the ranks of mainland dominated deals.

K Wah Financial Services is said to be on the hunt for a HK$6bn ($773.6m) five year facility. The company was last seen in the loans market in May this year, when it sealed a HK$2.4bn borrowing.

Shanghai Dazhong Public Utilities Group Co priced its Hong Kong IPO below the midpoint of expectations on Tuesday, fetching HK$1.72bn ($222.27m).

Chinese selfie app maker Meitu has cracked open books for its potential HK$5.5bn ($710.4m) IPO, a deal notable for coming from the technology sector — a rarity in Hong Kong’s primary market.