Top Stories from this week's IFR Asia magazine
Friday 1600 Hong Kong / Friday 0900 London
Last week’s spat over the Stock Connect link between Hong Kong and China has dredged up some uncomfortable questions over the future of the parallel markets. It needn’t have.
Asia’s first securitisation of project finance loans is cause for celebration. Keeping the party going, however, will be another story.
A strong response to the HK$3.59bn (US$457m) Hong Kong IPO of Ascletis Pharma, the city’s first under new rules accommodating early-stage biotech companies, is setting a positive tone for at least nine other such deals this year.
The shock offshore default of China Energy and Reserve Chemicals Group could force one of the country’s biggest institutional investors to be more cautious on its investments in offshore Chinese bonds.
A unit of embattled Chinese conglomerate HNA Group may be heading for a showdown with bondholders over the sale of five warehouses in Singapore, analysts warned last week.
Bankers in Hong Kong have shrugged off the surprise decision by China’s stock exchanges to exclude companies with dual-class shares from the Shanghai and Shenzhen Stock Connect schemes.
Singapore Exchange could see its first dual-class share listing later this year as Jubilant Pharma, a unit of India’s Jubilant Life Sciences, mulls such a structure for an IPO of up to US$500m.
Some asset managers have resorted to a new trick to win concessions in Asia’s ailing US dollar bond market: holding new issues to ransom.
Singapore’s Clifford Capital last week began marketing a groundbreaking securitisation of project finance loans, which aims to free up capital for banks and give institutional investors access to a new asset class.
China Citic Bank’s overseas investment banking unit is poised to make its debut in the offshore loan markets with a US$500m facility, the latest of several financings for non-banking subsidiaries of Chinese banks.
While many high-yield Chinese property developers are battling to maintain their access to the international capital markets, others are buying back their securities in an unusual bid to bolster investor confidence.
India is planning a capital injection of Rs113.36bn (US$1.6bn) in five public sector banks, including scandal-hit Punjab National Bank, ahead of the interest-payment date for Basel III-compliant Additional Tier 1 bonds.
Chinese property developers are offering juicy step-ups on onshore puttable bonds to relieve growing refinancing pressures, but the sweeteners are not swaying domestic investors worried about rising default risks.
Hangzhou-based developer Greentown China is planning to list its house building unit in a Hong Kong IPO that could raise about US$300m, according to people close to the deal.
The underwriters of Jiangxi Bank’s float have fully exercised the greenshoe option to expand the IPO size to HK$8.6bn (US$1.1bn).
Alan Roch has resigned from his job as head of Asia debt syndicate at Australia and New Zealand Banking Group. The bank has so far not named a replacement for him.
Indian renewable energy company ReNew Power is likely to postpone its US$1bn–$1.3bn IPO as investor demand is coming in below guidance, people with knowledge of the transaction said.
Hong Kong’s securities regulator has fined HSBC HK$9.6m (US$1.2m) for “systemic deficiencies” in its bond selling practices.
Commodity trader Trafigura Beheer is paying the same pricing on its latest US$1.5bn-equivalent financing as it did on last October’s visit to the loan market.
The underwriters of Chinese live-video-streaming operator Inke’s IPO have exercised the overallotment option in full, lifting the size of the float to HK$1.3bn (US$170m).
CMB Financial Leasing is returning to the market for a US$400m three-year term loan after it raised a bigger borrowing in June last year.
The Kangaroo market may be set for an upturn in financial and corporate issuance after short-end funding pressures in the US contributed to significant shifts in Australian/US dollar cross-currency basis swap levels.