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Friday, 28 April 2017

Outlook for Asian Financing 2016

A special report with IFR Asia magazine 930 (February 20 2016)

Grinding it out

Outlook for Asian Financing: Grinding it out

IFR Asia - Outlook for Asian Financing 2016

The outlook for Asia’s capital markets has changed dramatically in the first six weeks of 2016 – and not for the better. Most outlooks conceived before the end of last year had been torn up by the middle of January, written off as overly optimistic projections after a rout in commodity prices and global equity markets savaged global confidence.

A worker prepares pipes to service an oil well on oil fields operated by a subsidiary of the KazMunayGas Exploration Production JSC in Kyzylorda region, southern Kazakhstan.

Over a barrel

IFR Asia - Outlook for Asian Financing 2016

Asian energy credits have suffered less than those in other emerging markets, but some are still finding it tough to cope with a continuing slump in oil and commodities prices.

A man checks on his mobile phone while waiting for his coffee at a Starbucks branch in Beijing.

Living in hope

IFR Asia - Outlook for Asian Financing 2016

Just as Chinese internet finance companies are gearing up for a capital-raising binge, a vast fraud in the poorly regulated sector has cast a shadow on rosy valuations.

A 255-year-old Aldabra-Seychelles tortoise looks at visitors in a zoo in Calcutta.

Painful progress

IFR Asia - Outlook for Asian Financing 2016

After breakthroughs in Singapore and South Korea, the rest of Asia is well behind with the introduction of covered bonds. The pace of progress, however, is likely to remain slow.

Circus Oz performers dressed as red kangaroos pose for pictures at Darling Harbour in Sydney.

Bouncing higher

IFR Asia - Outlook for Asian Financing 2016

A repeat of Apple’s 2015 blockbuster may be unlikely, but the Australian credit market can accommodate many more international issuers at more modest sizes.

Soldiers of the People’s Liberation Army’s guard of honour hold flags in front of Beijing’s Tiananmen Square during the official welcoming ceremony for Serbian President Tomislav Nikolic outside the Great Hall of the People in Beijing.

Red alert

IFR Asia - Outlook for Asian Financing 2016

Investors are starting to pay greater attention to individual credit quality among Chinese SOEs as the pressure for reform dispels earlier expectations of unconditional state support.

Boats sail during an international boat show in Mumbai.

Sailing on

IFR Asia - Outlook for Asian Financing 2016

India’s ECM momentum looks set to resume after a slow start to the year thanks to a combination of robust economic growth, structural reforms and government sell-downs.

People walk under an electronic board showing stock information at the Shanghai Stock Exchange in Lujiazui Financial Area.

Good intentions

IFR Asia - Outlook for Asian Financing 2016

China is gearing up to introduce a registration-based IPO system, but doubts remain over the regulators’ ability to relinquish control. At least initially, the market-oriented regime will be heavily supervised.

A worker waits for customers inside a dumpling store in downtown Shanghai.

Piping hot yields

IFR Asia - Outlook for Asian Financing 2016

The offshore renminbi liquidity crunch hit the Dim Sum market hard at the start of the year, but an attractive carry-trade opportunity should rekindle the interest of onshore buyers once capital controls are eased.