Northeast Asia

The State Council publishes a series of policies to attract foreign investment, a People’s Bank of China (PBoC) advisor said China will unlikely follow the Federal Reserve in hiking rates this year, and the Ministry of Commerce (MofCom) criticises an US investigation into intellectual property rights in China.

Deutsche Borse is preparing to launch a Bond Connect offering later this year to further facilitate China access, but data from across the market shows global investors are still weighing up the China fixed income opportunity.

Chinese live streaming platform YY tapped the US market this week with a block sale of American Depositary Shares (ADS), capitalising on a surging stock price. Bankers are preparing for a raft of similar block sales — as well as a growing list of US IPOs from Chinese companies. Jonathan Breen and John Loh report.

Shenzhen-listed Changjiang Securities Co is planning to list its offshore arm in Hong Kong, having gained China Securities Regulatory Commission approval.

US President Donald Trump’s unexpected threat against North Korean leader Kim Jong-un last week alarmed investors, pushing down South Korean offshore bonds. But Korean issuers this week shrugged off concerns of a long-term problem and are already making plans to return to the market. Morgan Davis reports.

Peugeot Citroën’s joint venture in China is set to return to the China ABS market after a year away. The auto maker will offer investors only one tranche, down from the two tranches in its 2016 debut, but the deal size will triple to Rmb3bn ($449.8m).

Cheung Kong Infrastructure Holdings sold a fixed-for-life hybrid bond denominated in dollars on Wednesday. The deal did not draw an overwhelming response, but market participants said overall demand for the structure is muted.

The offshore bond market is set to welcome Lotte Group’s retail unit Lotte Shopping Co, which will sell dollar-denominated notes guaranteed by the Export-Import Bank of Korea (Kexim).

Hong Kong-based Zhongtai Financial International has turned to offshore investors with an inaugural dollar bond backed by a keepwell deed from Chinese brokerage Zhongtai Securities.

Credit Suisse’s head of equity-linked origination for Asia Pacific is retiring from the industry after 17 years with the bank, sources said.

Transport and tourism services provider Zhuhai Holdings Investment has sealed a successful return to the loan market through an increased HK$2bn ($255.7m) financing. The company, which tapped offshore liquidity after two years away, launched the deal at HK$1.5bn.

Peugeot Citroën’s joint venture in China is coming back to the ABS market on August 22 after a year-long absence. The automaker will approach investors with only one tranche, trimming from the two tranches offered on its debut. But that will not impact the size — the originator plans to triple its fund-raising with a Rmb3bn ($449.8m) offer.