Northeast Asia

Chinese company Shandong Linglong Tire Co has chosen dollars and euros for its maiden overseas fundraising.

Recent heavy supply in the Asian dollar bond market has found its first victim in Yango Group Co, which called off a planned $250m deal on Monday. While the Chinese developer’s high leverage raised some concerns, volatility in US Treasuries also played its part in the underwhelming demand.

Chinese conglomerate Ping An Group is planning to spin off its healthcare technology subsidiary through a potential $1bn IPO this year on the Hong Kong Stock Exchange, according to a source close to the deal.

Renminbi bullishness has served Luxembourg well. The tiny country has enjoyed substantial China-related fund flows in 2017, largely thanks to a wider offering of investments, Marc Andre Bechet, director of legal and tax at the Association of the Luxembourg Fund Industry (Alfi), told GlobalRMB.

The government of the Emirate of Sharjah is set to become the first issuer from the Middle East to enter the Panda market, after unveiling plans to raise Rmb2bn ($315.9m) from the onshore market.

Nomura has hired Charles Wang as chairman of China investment banking to strengthen its client coverage there, according to a memo seen by GlobalCapital Asia.

The first meeting of the Central Banks’ and Supervisors’ Network for Greening the Financial System has broadened the emphasis of the group’s work from a focus on climate change to one on climate and the environment.

Two Chinese property developers are in the market on Monday evening to sell convertible bonds with nearly identical structures.

China and the UK have still not announced the launch date of the London-Shanghai Stock Connect, but international investors are already positioning themselves to get the most out of the new link, Gary O’Brien, a senior custody banker at BNP Paribas, told GlobalRMB.

China Cinda Asset Management Co has mandated 12 global co-ordinators and an additional 11 bookrunners and lead managers for its upcoming senior dollar transaction, with investor meetings and calls scheduled over the next two days.

Bond supply in Asia continues to be strong in the lead up to Chinese New Year and ahead of the year’s first Federal Reserve meeting this week. The pipeline from the mainland particularly is building up, with property and energy names preparing to go offshore.

A HK$13bn ($1.66bn) three year financing to support a consortium’s acquisition of retail properties in Hong Kong is in limited syndication, with the underwriter title on offer.