Top Stories from this week's IFR Asia magazine
Released online Saturday 23:00 Hong Kong / Friday 16:00 London
A 15% two-day plunge in Chinese shares and a surprise rate cut rattled worldwide markets last week as global investors lost confidence in mainland authorities’ ability to manage the inevitable slowdown in the world’s second-biggest economy.
Asian credit lost its status as a global safe haven last week, as the market slumped in response to a steep drop in Chinese equities and weakening Asian currencies on a day that Chinese media dubbed “Black Monday”.
Investors and issuers are raising concerns over the role of bookrunners that submit early orders to support Asian bond offerings.
The continued turmoil in Chinese equities is lifting interest in exchange-traded bonds, broadening the domestic fixed-income market as investors look for alternatives to volatile A-shares.
Extreme swings in global equity markets took their toll on Asian IPOs last week, derailing Singapore’s first mainboard IPO of the year and complicating plans to launch at least US$5.5bn of Chinese listings.
Thailand’s domestic bond market was the only one in South-East Asia to stay open last week, defying global growth fears that roiled financial markets across the world.
A handful of planned bond issues from Mongolian banks has perplexed bankers and investors, coming at a time when fears of a slowdown in neighbouring China has sent funding costs soaring.
India has emerged as a lone bright star in the region’s equity capital markets after the Indian government proved it could engineer a US$1.4bn offering even in the worst possible market conditions.
China’s latest rate cut has improved sentiment in Asia’s fragile high-yield bond market, prompting some investors to look for a good entry point after weeks of heavy selling.
Chinese issuers continued to forge ahead with plans for sizable private share placements last week even as stocks plunged to a new year-lows, down 40% from the June peak.
Apple’s stellar Kangaroo debut has confirmed that a lack of supply, rather than a lack of demand, is holding back Australia’s stunted corporate bond market.
Doubts are emerging over another big acquisition of a US-listed Chinese company after the latest sell-off in global equity markets.
IFR's daily digest of views & news for capital markets professionals
China’s volatile markets have everyone looking in the wrong direction.
Whether government or household, there is one thing we can’t do without: inflation.
Regulators are fast overstepping the mark and putting individuals at risk.
Yes, folks that’s it. While much of Europe has sweltered with record temperatures, the summer is nearly over in the UK as the mercury are already falling fast in the run-up to the August Bank Holiday. And what a summer it has been. Highlights included the latest Greek farce of June and early July, followed by the massive fluctuations in Chinese stocks and oil in August. The fact that UK is off on Monday means the month will come to an end with a bit of a whimper, but that gives us an opportunity to contemplate what might happen as the nights start to draw in over the autumn and early winter. Clearly the most pressing matter is the FOMC meeting on September 16/17. Will the Fed pull the trigger or not? Fed funds are still pricing in a 20% possibility that they will, so there is a small chance and some are advocating a 25bp hike to give the Fed some ammo should they need to tighten if the worse comes ...
Sweden’s Svenska Handelsbanken has priced three-tranche Samurai bonds to raise ¥66.8bn (US$556m), despite turbulence in the market during bookbuilding.
Merck reopened the European corporate bond market with a punchy triple-tranche euro offering on Thursday, breaking several weeks of drought seen after volatility dashed hopes of a late-summer surge
What a week, and it’s not over yet.
James Saft on the devaluation and semi-flotation of the yuan.
Grenada is expected to conclude its debt restructuring in a matter of weeks, the International Monetary Fund said on Thursday following a recent visit to the country.
Reduced expectations for a Fed lift-off in September and a sharp bounce in commodities had LatAm credits enjoying a rare rally on Thursday.