Northeast Asia

In this week’s round-up, the China Securities Regulatory Commission (CSRC) considers launching A-share related derivatives in Hong Kong after MSCI’s inclusion, Citi launches two onshore bond indices, and the Chinese premier says M&A by foreign companies is welcome in the Mainland.

HSBC has received approval from China Securities Regulatory Commission to set up a majority-owned joint venture securities company — HSBC Qianhai Securities — in the Mainland. The regulatory clearance comes about a year-and-a-half after the UK lender announced the JV.

Chinese commercial lender Zhongyuan Bank has opened the books on its HK$8.34bn ($1.1bn) IPO after securing commitments from three cornerstone investors for about half the deal.

Inner Mongolia Energy Engineering Co plans to launch bookbuilding for its Hong Kong IPO on Monday, and could bag up to HK$1.23bn ($157.6m).

Global gaming company Razer is planning to list in Hong Kong, and has filed a draft prospectus with the city’s stock exchange.

Modern Land (China) Co grabbed $130m from its green bond on Thursday, but the pricing of the notes did not move throughout bookbuilding as investors were less than impressed with the high yield credit.

Mizuho has lost a banker in its syndicated loans department in Hong Kong, according to two sources.

Foreign institutional investors can settle their trades on a T+2 basis in China’s interbank bond market (CIBM), according to a June 29 announcement. The move will boost international investors’ confidence in accessing the Mainland fixed income market, according to participants.

Chinese company Avic International Leasing has increased the size of its latest syndicated loan to $200m from $150m.

The Asian Infrastructure Investment Bank (AIIB) came closer to making its debut as a borrower in the international bond markets on Thursday when it received its first triple-A credit rating. As its treasurer, Søren Elbech, approaches the day when the AIIB awards its first mandate, the borrower's plans for its funding mix, staffing and debut deal are taking shape.

As the first half comes to an end, the ECM market appears concerned that Hong Kong has lost its title as the top IPO destination in the world, slipping behind China and the US. The drop may be disappointing but market watchers should not read too much into that. The city’s exchange is on much stronger footing this year when compared to 2016.

A €179.4m loan to support Chinese company Aier Eye Hospital Group’s acquisition of Spanish firm Clinica Baviera has entered syndication with three banks at the helm. The deal is another example of Mainland firms’ eagerness to expand overseas, which is in turn giving the country’s lenders with similar ambitions a leg-up as they venture into relatively unexplored markets. Shruti Chaturvedi reports.