Hong Kong SAR

Chinese environmental solutions provider China Everbright International is planning to spin off and list its subsidiary China Everbright Greentech (CEG) on the Hong Kong Stock Exchange, according to a filing with the bourse on Thursday.

In this round-up, China introduces a new calculation for bank’s reserve ratio, trading of RMB futures in Hong Kong drops, the Shenzhen Stock Exchange (SZSE) is ready for Hong Kong Connect, and Singapore’s central bank sees a slowdown in RMB internationalisation. Plus, a recap of GlobalRMB’s coverage this week.

A Bank of China index tracking the yield differential between onshore and offshore renminbi debt shows that dim sum bonds continue to look expensive for issuers although the gap is starting to shrink.

Back in the day, us bankers would go to any lengths to win new business. Marathon drinking sessions with issuers – check. A promise of internships to their nieces, nephews or neighbours – check that off too. But while such enticements have now been severely curtailed, a friend surprised me with his latest adventure.

Hong Kong-listed Semiconductor Manufacturing International Corp returned to the equity-linked market this week for the first time since 2014, soaking up demand to raise $450m with a seven non-call four year convertible.

Former Barclays banker Candace Hahm is set to join Mitsubishi UFJ Securities (HK) as an associate for the capital markets group.

An executive director who quit the loans syndicate and distribution team of Standard Chartered in April, has joined UBS.

China Renaissance has hired Yang Xia as managing director and global head of equities based in Hong Kong.

The Hong Kong Stock Exchange (HKEX) appears to be tightening scrutiny on reverse takeovers and listed shell companies, issuing a guidance note on Friday to vet listing candidates more closely.

In this round-up, RMB deposits shrink further in Singapore and Hong Kong, the Stock Connect scheme southbound channel continues to dominate trading, China prepares for direct trading of RMB and Korean won, and Italian enterprises are found to be warming up to the RMB. Plus, a recap of GlobalRMB’s coverage this week.

Commodities trader Noble Group has decided to raise about S$719m ($522m) through a rights issue as it seeks ways to pay off outstanding debt.

Efforts to deepen RMB liquidity in offshore markets have struggled so far, despite the currency’s growing popularity for trade and investment purposes. Yet, it is clear that the success of the currency on a global scale will rely on deepening liquidity and the financial infrastructure that supports it.