Morgan Stanley

The long-awaited London-Shanghai Stock Connect faced its first test this week as Huatai Securities went on the road with its sale of global depository receipts (GDRs) on the London Stock Exchange. More issuers could follow as mainland investors hunt for opportunities to use their offshore capital, said market participants. Jonathan Breen and Aidan Gregory report.

Investors piled into deals for Spain and Italy on Wednesday despite the miniscule yields on offer, as the spectre of further easing of monetary policy looms large over the market.

It took just over two hours on Wednesday morning for the IPO of Trainline, the UK transport booking website, to get covered after the company opened the books on its £630m IPO on the London Stock Exchange.

India’s Power Finance Corp sold a $1bn dual-tranche deal on Tuesday, its first offshore bond outing since its acquisition of REC at the end of March.

Huatai Securities has already covered the minimum target for its global depository receipts (GDRs) IPO on the London Stock Exchange, according to a source close to the deal.

Chinese real estate developers Sunac China Holdings and Yango Group returned to the offshore market on Tuesday, with the former raising a larger-than-expected $600m. Property and construction firm Jiangsu Zhongnan Construction Group Co also priced its maiden dollar bond.

Mexico’s largest locally owned bank Banco Mercantil del Norte (Banorte) will begin meeting fixed income investors this week as it looks to test investor appetite for Mexico credit with a new subordinated bond.

Huatai Securities, the Chinese brokerage, has set the price range for its $1.65bn sale of global depositary receipts on the London Stock Exchange, enticing investors with a healthy discount to the Shanghai-listed A shares.

Hutchison China MediTech (Chi-Med) is looking to launch bookbuilding for its Hong Kong listing as early as June 21 for proceeds of around $600m, according to a source close to the deal.

Chinese healthcare company Jinxin Fertility Group has kicked off a week-long roadshow for its Hong Kong IPO, looking to raise up to HK$2.99bn ($381.4m) from the deal, said a source close to the situation.

Peru will meet fixed income investors in the US on Tuesday and Wednesday as the new second best rated sovereign in Latin America prepares a dual currency bond offering that would include its first visit to dollar markets since 2015.

The Inter-American Development Bank hit screens on Monday afternoon for a new June 2029 dollar benchmark. The note is the IADB's first 10 year benchmark of the year and other SSA issuers are circling, ready to enter the market if this deal goes well.