Northeast Asia

Chinese regulators opened the door to foreign bond investors this week, launching a Bond Connect scheme that offers unfettered access to onshore renminbi bonds. The scheme promises to be a game-changer for global investors — as long as China does not rest on its laurels. Paolo Danese and Morgan Davis report.

Fears over debt and governance problems at Chinese companies are prompting banks to rethink their willingness to lend. The pull-back is leading to a push for more transparency — and looks set to send margins on many deals higher, bankers said this week.

DBS launched syndication for a HK$1.2bn ($153.7m) borrowing by photovoltaic power plant developer Beijing Enterprises Clean Energy last week.

ABN Amro Bank returned to the dollar Formosa market on Wednesday at the prompting of Taiwanese investors, raising $450m from its deal.

BlueBay asset management has hired a senior sovereign strategist to focus on China, adding to its emerging markets research offering.

HSBC and Bank of East Asia have won approvals from the China Securities Regulatory Commission to set up joint venture securities companies in the mainland.

StanChart’s north Asia capital markets head bows out — Hsu joins StanChart levfin team — Mizuho loses Thailand, Korea-focused banker

China-based Hebei Construction Group is looking to raise between $200m and $300m through a Hong Kong IPO in the second half of the year, said a banker on the trade.

Zhongyuan Bank’s HK$8.34bn ($1.1bn) IPO in Hong Kong was well covered as of Thursday morning, according to a banker at one of the leads.

Two firms from China’s new economy sector, which are backed by technology companies Alibaba and Tencent, plan to tap equity investors for over $2bn in their Hong Kong IPOs.

Two Chinese banks sold dual tranche floating rate dollar bonds this week, taking advantage of the market’s enthusiasm to raise a combined $1.8bn. But the eagerness for the format appears to be waning.

Property company Jinmao is returning to the Panda market just three months after its debut in the asset class. Sources said the issuer, which is hoping to raise Rmb2.5bn ($367.9m) with a three year note on July 7, is seeking a snap deal to exploit relatively stable onshore yields.