Hong Kong SAR

Chinese aluminium manufacturer China Hongqiao Group plans to raise HK$3.8bn ($489.6m) from a rights issue in early February, according to a document filed with the Hong Kong Stock Exchange.

There is no denying markets have given the RMB a rough start to the year. But despite the depreciation pressure on the RMB, the real trend seems to be more market-driven volatility rather than persistent weakening, according to some.

Virscend Education Co has raised HK$1.8bn ($232.2m) after pricing its Hong Kong IPO near the bottom of the range, emerging relatively unscathed from the volatility that rocked global equity markets last week.

Mayer Brown JSM has given a boost to its Hong Kong team by hiring a new partner experienced in IPOs and other areas of corporate finance.

5y CNY swaps have been well offered as Chinese equities continue their sell-off. In the short-end though, 1y swaps have been bid on concerns about the yuan. In Hong Kong today HIBOR spiked sharply on CNH liquidity tightness spurred by reports of indirect PBOC intervention, writes Deidre Yeung.

Bank Julius Baer has made senior changes to its southeast Asia business, creating the role of vice-chairman as well as appointing a new head of private banking.

China’s attempts to allow markets forces to play a bigger role in the currency seemed to have backfired this week with both the onshore RMB (CNY) and its offshore (CNH) counterpart experiencing a tumultuous ride. Further depreciation is expected but the big unknown remains how policy makers will act.

Jiangsu Hansoh Pharmaceutical Co and Simcere Pharmaceutical Group are looking to raise a combined $2.5bn from Hong Kong IPOs that could launch in the first half of 2016.

In the first RMB round-up of 2016, Hong Kong RMB deposits and cross-border trade settlement recovered in November, RQFII programme added three new entities in December 2015, the Hong Kong and Singapore exchanges both saw strong futures trading volumes in December, ICBC managed nearly Rmb1tr in RMB-won trades, and Zimbabwe will make RMB one of its legal tenders this year. Plus, a recap of GlobalRMB’s top stories this week.

A former loans banker at HSBC has re-emerged in a senior role at Industrial and Commercial Bank of China (Asia).

Hsin Chong Construction Group is meeting fixed income investors to gauge interest for what would be its second dollar bond.

Options on Hong Kong-listed Chinese shares traded at one of the most expensive levels of relative value in recent history on Thursday as traders bid the premium for Hang Seng China Enterprises Index (HSCEI) contracts well above the recent realised volatility of the index.