Northeast Asia

Bankers in China have warned Emerging Markets that much of the debts taken on to fund China’s giant $1.8tr One Belt One Road programme could go bad, threatening another financial crisis

The Western financial system could learn a thing or two about ensuring transparency in the primary debt markets by studying an approach adopted in China, according to the treasurer of the World Bank — while new technologies like blockchain could also help restore trust in the financial system

Deutsche Boerse, together with its Chinese JV partners, is gearing up to launch a new market called "D-shares" that will help to Chinese companies raise equity overseas. The shares will be documented in English, listed in Frankfurt and, crucially, match up to German standards of disclosure and transparency

A recent fine by US regulators on the New York branch of Mega International Commercial Bank has led to demands for overseas branches of Taiwanese lenders to collect more comprehensive information about their clients. This is causing fears that the credit approval process for syndicated loans will lengthen, while banks will also find it tricky to lend to smaller borrowers. Shruti Chaturvedi reports.

Details about a $350m-$400m financing for private equity firm Permira’s acquisition of corporate services provider Tricor Group have emerged.

Chinese data firm GDS Holdings has begun pre-marketing its $300m US listing with bookbuilding expected in the next two weeks. Logistics company ZTO Express has also chosen to float in the US.

A report from American think tank Atlantic Council is calling for China and Latin America to take better advantage of their trading links and improve the usage of renminbi on the continent.

China Aoyuan Property has mandated banks to organise fixed income investor meetings to update the market on recent news about its credit.

The true rate of non-performing loans held by China’s 4,000 banks is much higher than the official 1.75%, according to leading economists who warn that the country faces the threat of a major debt crisis

Lenders have put together a financing package of $550m to back MBK Partners and TPG’s joint acquisition of Wharf T&T from Wharf Holdings.

Doosan Bobcat is guiding investors for its W2.4tr ($2.2bn) IPO in South Korea to a price that is 15% below the bottom of the marketing range, according to bankers close to the trade.

The combination of newly announced MSCI China equity indices and a relaxation of renminbi qualified institutional investors (RQFII) rules last week has reignited discussions about A-shares inclusion in the MSCI Emerging Market index. While the moves are considered important, they do not warrant an off-cycle decision, say market participants.