Hong Kong SAR

DCM bankers are expecting a reasonably busy week for deal flow in Asia, as markets slowly stabilise and bond investors try to look past recent volatility.

In this round-up, China’s top government officials, including president Xi Jinping, discuss key economic targets and a fiscal stimulus package, and foreign minister Wang Yi warns the US against a ‘new cold war’.

Chinese internet giants JD.com and NetEase are targeting mid-June to launch their respective Hong Kong listings, according to sources familiar with the matter.

Bank of East Asia (BEA) sold the first Basel III compliant tier two dollar bond in Asia since the global outbreak of Covid-19. It raised $600m on the back of a book that was more than 8.5 times oversubscribed at its peak.

In this special round-up on China’s annual Two Sessions parliamentary meeting, the government does not set a growth target for 2020 but raises the budget deficit to at least 3.6% of GDP. It also plans to issue Rmb1tr ($140bn) of special ‘anti-pandemic’ treasury bonds.

Hong Kong’s equity markets took a hit on Friday and sentiment soured among bond investors over news that China is considering enacting the national security law in Hong Kong. Bankers have described the possible impact as everything from a “death knell” to a “flash point” for the special administrative region’s markets.

Hong Kong’s benchmark Hang Seng Index made a historic change this week, allowing companies with weighted voting rights (WVRs) and secondary-listed shares on to the index.

Cruise ship operator Genting Hong Kong has become the latest Asian company to seek a covenant waiver on a loan as the Covid-19 pandemic hits its operations. A rise in payment deferral requests is putting further pressure on retail banks that are already being forced to take a step back from lending. Pan Yue reports.

Bonds are back, baby! Or at least that’s what my banker friend is telling me.

Henderson Land Development Co took advantage of the strong aftermarket performance of recent bonds sold by its Hong Kong peers to raise $300m from investors on Wednesday.

China’s Hope Education Group is making its debut in the offshore loan market for a $200m borrowing.

Property company HongKong Land made a rare appearance in the dollar bond market on Tuesday, ending a six year hiatus with a $600m trade.