Northeast Asia

Devesh Ashra has left his position as co-head of Asia Pacific debt solutions at Bank of America in Hong Kong.

Hong Kong’s stock exchange has returned Chinese biotechnology firm Akeso’s listing application, a deal being sponsored by JP Morgan and Morgan Stanley.

Asian debt bankers had expected a peaceful week amid the Chinese New Year holidays, but rising concerns about the spread of the coronavirus this week led to a rush of emergency calls. Several borrowers have decided to skip or delay planned roadshow meetings in Hong Kong.

As financial markets fretted over the spread of a coronavirus outbreak in China this week, one security was in the firing line more directly than any other. Holders of the World Bank’s pandemic bond will lose principal if the disease spreads by a sufficient amount, writes Jasper Cox.

Korean Housing Finance Corporation (KHFC) issued its first €1bn-sized covered bond and first negative yielding Asian covered bond on Wednesday. The strong reception was in keeping with two German Pfandbriefe also issued this week by Deutsche Apotheker- und Ärztebank (Dapo) and Sparkasse Pforzheim Calw.

European equity capital markets’ buoyant start to the year ground to a halt this week as banks held back from doing deals over concerns about the outbreak of a deadly strain of coronavirus in China and how it may damage investor risk appetite. Losses in Asian markets, which are reopening following the Lunar New Year holiday, have compounded fears that global risk sentiment may be turning.

Korean Housing Finance Corporation (KHFC) issued its first €1bn-sized covered bond on Wednesday and priced the deal inside fair value. At the same time, Société Générale issued a €1bn 10 year green covered bond flat to its curve with eye-catching demand.

Citic Capital Acquisition Corp, a special purpose acquisition company (Spac), has filed for a $200m IPO. It is targeting companies in the energy efficiency, clean technology and sustainability sectors.

Peijia Medical and Shenzhen Hepalink Pharmaceutical Group Co have set the ball rolling for Hong Kong IPOs, having filed draft prospectuses with the city’s stock exchange.

China Aoyuan Group has closed a $230m-equivalent club loan with eight banks.

In this round-up, Chinese vice premier Han Zheng said China will further remove barriers of entry for foreign investment and lower its tariffs and Huawei’s chief financial officer Meng Wanzhou is still waiting for a ruling on her extradition to the United States.

In this round-up, the International Monetary Fund revised its forecast on Chinese economic growth upwards to 6% in 2020, Chinese banking institutions recorded more assets but also more liabilities last year and the Securities Association of China updated its guidelines on due diligence for corporate bond underwriters.