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Demand from international investors to participate in Bond Connect is strong – with Ireland and Luxembourg-registered funds set to be the next group to join in once real-time delivery versus payment is introduced later this year, two bankers told the IFLR Asia Capital Markets Forum on Tuesday.
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The Chinese regulators are planning to expand Bond Connect to cover exchange traded bonds, and are mulling changes to older access channels such as the qualified foreign institutional investor (QFII) scheme, according to market participants.
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Swiss food and drinks company Nestlé tapped a fourth currency market in three months on Tuesday when it printed a £500m 3.5 year bond ahead of a sterling redemption.
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The three corporate bond issuers who sold new issues in euros on Tuesday offered something short, something intermediate and something long. The shorter tranches benefitted from the most interest.
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UK water utility Severn Trent sold a £250m five year corporate bond on Monday, building upon the positive tone in the sterling market from the previous week.
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Shenzhen-Hong Kong Stock Connect northbound trading hits new high, BlackRock strategist says Belt and Road will bring about new opportunities in Asia for long term investors, and United Overseas Bank (UOB) opens a new branch in Kunming, Yunnan province.
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The ebb and flow of secondary markets and the stop-start effect of the Thanksgiving holiday on this week’s new issuance are prompting a range of views from syndicate managers as to just how long the market will remain open in 2017.
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Volkswagen Finance (China) wrapped up its third asset-backed securities (ABS) deal on Friday, raising Rmb3.5bn ($531.8m). The company was forced to extend bookbuilding into a second day amid rising bond yield in the Chinese market.
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The deputy governor of the People’s Bank of China says markets forces are the main driver behind renminbi internationalisation, Bank of China’s index shows onshore RMB bond yields stayed above their offshore counterparts last month, and Pakistan refuses to use the renminbi in the Gwadar Free Trade Zone – part of the China-Pakistan Economic Corridor.
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Property developer Country Garden, which holds the record for selling the Panda market’s largest bond, has obtained approval for a Rmb9.5bn ($1.44bn) issuance programme, the company said in a filing on Hong Kong Stock Exchange on Thursday.
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The high-grade US bond market is set for a much-needed breather over the Thanksgiving holiday as deal indigestion makes way for Turkey-induced dyspepsia.
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American fast food chain operator McDonald’s on Tuesday sold the sixth reverse Yankee deal in a month, issuing a long six year tranche and a 12 year tranche to raise €1.2bn.