Latest regulation/policy news
Two Sessions special: big tax cuts, higher local government bond quotas, more loans to small companies
In this special round-up on China’s annual ‘Two Sessions’ parliamentary meeting, premier Li Keqiang promised a bigger tax cut than expected, increased the local government special purpose bond quota and demanded large commercial banks to boost their lending to small enterprises
The Shanghai Stock Exchange (SSE) published the official rules for the new tech board at the end of last week. The exchange said the tech board will allow unprofitable companies to list, prevent small retail investors from participating directly and loosen lock-up requirements for key investors.
China policy round-up: CBIRC pushes banks to lend more, US trade rep asks for ‘significant structural change’, HKEX plans to add more products
In this round-up, the China Banking and Insurance Regulatory Commission (CBIRC) put pressure on banks to provide more private sector financing, the US trade representative said he was not yet satisfied with China’s trade promises and the Hong Kong Stock Exchange (HKEX) planned to increase cross-border capital market deals.
China policy round-up: Trade talks deadline could be delayed, NDRC looks at bond defaults, Tianjin receives funding from BOC
In this round up, US president Donald Trump hinted at a potential delay of the March 1 deadline for a trade deal with China, the National Development and Reform Commission required its local units to zoom in on the potential for bond defaults and Bank of China (BOC) said it will lend Rmb300b to the Tianjin government.
Chinese regulators published a draft of new rules for corporate Panda bond issuers at the start of February. Bankers say the rules have done little to address one of the biggest headaches for potential issuers, but they do represent a step forward.
China policy round-up: China plans merger of investment programmes, US charges Huawei, JPM to offer Hong Kong funds onshore
In this round-up, the China Securities Regulatory Commission (CSRC) issued plans to merge two long-standing access schemes for foreign investors, the United States Justice Department unveiled charges against Huawei just as trade talks were set to begin, and JP Morgan (JPM) received approval to offer Hong Kong funds in China.
Bank of China’s Rmb40bn ($5.9bn) perpetual bond has opened up a possible path for other banks with similar funding needs, but smaller banks may still find it hard to attract investors, said analysts and bankers this week. Widening the scope of perpetual bonds so that insurance companies can purchase them will be key to solving the problem.
China policy round-up: PBoC rolls out first TMLF, Shanghai tech board sees progress, central bank offers bills swap
In this round-up, the People’s Bank of China launched the first targeted medium-term lending facility (TMLF), a central committee for deepening reform signed off on Shanghai tech board launch, and the central bank set up bills swap to support banks’ perpetual bonds.
China policy round-up: next round of trade talks scheduled, PBoC deputy governor discusses Panda bonds proceeds, Bank of China to issue first perp
In this round-up, Liu He will visit the US at the end of this month, Pan Gongsheng spoke at the China Bond Market International Forum and Bank of China plans to issue the first perpetual bonds in the domestic market.
The big three international rating agencies have all registered with Chinese regulators so they can join the country’s onshore credit rating industry, but none have started operations yet. Rebecca Feng investigates the reasons behind the holdup.
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Latest news by market and league table performance
GlobalRMB Panda Bonds league table
|Rank||Arranger||Share % by Volume|
|1||China Merchants Securities Co||26.40|
|2||Industrial and Commercial Bank of China (ICBC)||20.00|
|4||Agricultural Bank of China (ABC)||12.00|
|5||Bank of China (BOC)||11.33|
Panda Bond Database
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||13-Mar-19||Global Logistic Properties via Iowa China Offshore Holdings||Hong Kong||3,300|
|2||12-Mar-19||United Overseas Bank (UOB)||Singapore||2,000|
|3||05-Mar-19||BMW Finance N.V.||Germany||3,000|
|4||01-Mar-19||Semiconductor Manufacturing International Corp (SMIC)||China||1,500|
|5||25-Feb-19||New Development Bank||China||3,000|
Offshore RMB Bond Top Bookrunners
|Rank||Bookrunner||Share % by Volume|
|1||Standard Chartered Bank||46.13|
|2||Haitong International Securities||9.55|
|2||Guotai Junan International||9.55|
Latest Offshore RMB Bonds
|Pricing Date||Issuer||Country||Size Rmb (m)|
|1||13-Mar-19||Daimler International Finance||Germany||1,000|
|2||05-Mar-19||Fantasia Holdings Group Co||China||1,000|
|3||26-Feb-19||Far East Horizon||China||440|
|4||22-Feb-19||Asian Development Bank (ADB)||Philippines||300|
|5||31-Jan-19||Emirates NBD||United Arab Emirates||400|