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Agricultural Bank of China’s Hong Kong-based subsidiary got its first taste of the onshore bond market — and its policy-inspired volatility — as the Chinese central bank tightened bond underwriting rules and statements from the finance ministry led to a spike in supply of local government debt. [ABSTRACT FROM AUTHOR]

The People’s Bank of China brings back old policy to control RMB exchange rate, mainland and Hong Kong authorities set the date for launching investor ID for northbound Stock Connect transactions, and the Chinese securities watchdog allows foreign investors to take majority stakes in futures companies. [ABSTRACT FROM AUTHOR]

Mercedes-Benz Auto Finance has completed the tightest auto asset-backed securitization by any foreign originator in China in almost two years. The deal, which closed on Monday, was twice oversubscribed despite two underwriters dropping out of the syndicate at the eleventh hour. [ABSTRACT FROM AUTHOR]

One year after selling its first Panda bond, China Everbright Water came back on August 15 to sell two tranches with identical structures but marketed one of them as a green bond. Investors showed little passion for the tag, however, with the green tranche pricing slightly wider than the other. [ABSTRACT FROM AUTHOR]

German carmaker Daimler came back to the Panda bond market to raise Rmb4bn ($582m) last Thursday, marking its third outing in the asset class in 2018. The issuer shifted its focus to the shorter-dated tranche, which made up 75% of the offer. [ABSTRACT FROM AUTHOR]

Bank of China becomes the RMB clearing bank for a financial centre in Malaysia, a Chinese credit rating agency is in trouble with two regulators after breaching rules in the exchange and interbank bond markets, and the People’s Bank of China reportedly blocks RMB flowing out of free trade zones (FTZs). [ABSTRACT FROM AUTHOR]

After a two year absence in the Panda bond market, Veolia Environnement made its return last week to raise Rmb1bn ($145.6m). Instead of placing another three year bond, the French corporate issuer cut the tenor to just one year — a move that paid off for the borrower, said bankers. [ABSTRACT FROM AUTHOR]

Geely and BNP Paribas’s auto finance joint venture hit the Chinese securitization market with a bang on Tuesday, as domestic investors oversubscribed its single tranche sale by three times. The deal came a week before Mercedes is scheduled to launch a similarly structured transaction, which will be its first in China this year. [ABSTRACT FROM AUTHOR]

Geely and BNP Paribas’s auto finance joint venture hit the Chinese securitization market with a bang this week, as domestic investors oversubscribed for its single tranche sale by three times. The deal came a week before Mercedes is scheduled to launch a similarly structured transaction, its first in China this year. [ABSTRACT FROM AUTHOR]

Regulator allows foreign nationals in China to buy A-shares, Beijing and Washington walk back to the negotiation table, and the Chinese finance ministry guides local governments to borrow and spend on infrastructure in the third quarter. [ABSTRACT FROM AUTHOR]

Dagong Global Credit Rating, one of China’s largest credit rating agencies, has been banned from rating bonds in the interbank market for one year because it was providing consulting services to companies as it was rating them, the National Association of Financial Market Institutional Investors (Nafmii) announced today. [ABSTRACT FROM AUTHOR]

The People’s Bank of China says it will not weaken the RMB amid rising trade tensions with the US, the banking and insurance regulator wants more lending to small businesses, and the former boss of the Chinese central bank argues that RMB internationalization should keep a low profile. [ABSTRACT FROM AUTHOR]

The lending arm of Ford’s China operation took advantage of bullish sentiments in the onshore market on August 2, sealing a Rmb4.5bn ($662.3m) securitization. Bankers say Ford managed to price below Nissan, which offered a similar ABS recently, thanks to a major policy announcement that emerged last week. [ABSTRACT FROM AUTHOR]

Sri Lanka and Turkey are preparing to sell their first Panda bonds, enticed by falling funding costs in China's bond markets. But given they both have lower credit ratings than previous sovereign Panda issuers, they may face an uphill battle as regulators scrutinise their finances. [ABSTRACT FROM AUTHOR]

A Shanghai-based joint venture between carmaker Geely and BNP Paribas is to enter the Chinese auto loans securitization market for the first time next week. The company will test demand with a Rmb1.94bn ($284m) deal, selling just one tranche to investors in the interbank bond market. [ABSTRACT FROM AUTHOR]

China’s foreign exchange reserves grow in July, renminbi derivatives in Singapore hit a new high as trade war escalates, official data shows a pick-up in exports from China to Belt and Road countries. [ABSTRACT FROM AUTHOR]

China’s central bank brings back reserve requirement for FX forwards to support the RMB, the securities watchdog welcomes the launch of two year government bond futures, and a top financial regulatory body says it wants more support for the real economy before China’s leaders meet in Beidaihe. [ABSTRACT FROM AUTHOR]

China’s top policy bodies got behind a loosening of the policy stance to give China’s lagging economy a boost, as Trump’s trade war continues to push the renminbi lower and creating more uncertainty on China’s growth prospects. [ABSTRACT FROM AUTHOR]

Trading volume for RMB futures contracts are up in Hong Kong and Dubai, activity on Bond Connect slows down in July after a strong uptick in the previous month, and the FX watchdog shuts the door on new inbound and outbound investment quotas. [ABSTRACT FROM AUTHOR]

Portugal will need to disclose more information about its finances to proceed with its planned Panda bond issuance in China, according to a document published on the regulator’s website but later pulled. [ABSTRACT FROM AUTHOR]

Bond index providers are racing to include Chinese bonds in their benchmarks. But before taking the leap, they should study a recent decision on A-share inclusion — and the sceptical response it got from investors. [ABSTRACT FROM AUTHOR]

Ford's Chinese auto lending subsidiary is selling a Rmb4bn ($587.1m) securitization in the renminbi market later this week, coming to the market a fortnight after Nissan. The originator is deploying the fixed-and-floating combo used by Nissan — a tactic which will help the company broaden its investor base, say bankers. [ABSTRACT FROM AUTHOR]

A new dawn has broken for RMB business in Japan, as the country prepares to launch its first RMB clearing bank and a local currency swap line with China. For now bankers are focusing on new renminbi investment quotas, which could mobilise the vast pool of Japanese household assets to tap onshore Chinese securities. [ABSTRACT FROM AUTHOR]

The renminbi is the fifth most used payments currency in the world despite a fall in payments value in June, credit rating agencies in China are set to undergo a review by commercial banks, and the asset management arm of UBS starts a fund to tap both onshore and offshore Chinese stocks. [ABSTRACT FROM AUTHOR]

Regulators water down wealth management product (WMP) rules, Donald Trump calls China a currency manipulator as his treasury secretary ramps up the pressure, and Hong Kong Exchanges and Clearing (HKEX) pushes USDCNH options trading volumes to a new high. [ABSTRACT FROM AUTHOR]

Hang Lung Properties raised Rmb1bn ($149.8m) in its Panda bond sale on July 13. Most of the demand for the builder’s debut came from the offshore market, as mainland investors, guided by the government’s policy, kept their hands off real estate names. [ABSTRACT FROM AUTHOR]

Onshore DCM bankers are having a busy week in the Panda bond market. Two returning issuers have lined up onshore transactions this week, as they seek to profit from looser liquidity and falling yields in China. [ABSTRACT FROM AUTHOR]

The onshore arm of DBS bagged Rmb3bn ($448.3m) from the Chinese bond market on Tuesday, marking its first trade since 2015 that carries a tenor of more than one year. The transaction was also the second bond from a Singaporean lender in the mainland this year. [ABSTRACT FROM AUTHOR]

Four issuers, sovereign and sub-sovereign, are drawing closer to their debuts in China’s Panda bond market, as they seek to take advantage of falling yields in the Mainland, sources told GlobalRMB. [ABSTRACT FROM AUTHOR]

Investors queued up on Thursday to buy Beijing Enterprises Water Group's (BEWG) second Panda bond in two months. The deal came as property Panda issuers are held up by regulators in the pipeline, as China seeks to cool its housing market. [ABSTRACT FROM AUTHOR]

Mainland stock exchanges bar Xiaomi from southbound investment, indices show RMB internationalisation regaining lost ground, the UK’s stockpile of renminbi deposits grows again. [ABSTRACT FROM AUTHOR]

Stock Connect and Bond Connect are international investors’ favourite channels to tap the onshore capital markets thanks to their simplicity compared with other access programmes, according to a survey by Standard Chartered. [ABSTRACT FROM AUTHOR]

Hong Kong-based Hang Lung Properties is hitting the Panda bond market for the first time, as it seeks to finance the construction of two shopping malls in the mainland. The issuer says the new buildings will be environmentally friendly, making the Rmb1bn ($150.9m) trade one of the few green Panda deals. [ABSTRACT FROM AUTHOR]

Hong Kong-listed China Water Affairs Group (CWAG) has hit the Panda bond market for the first time, raising Rmb200m ($30.3m) from a private deal. Bankers think private placements and cornerstone-driven transactions are only going to get more attractive, in large part thanks to rising bond market volatility. [ABSTRACT FROM AUTHOR]

Apple sets up a fund to invest in clean energy suppliers in China, Citi eyes Chinese investment in India with new team, and Citic International sees waning appetite from onshore corporations and individuals for cross-border solutions because of the US-China trade war. [ABSTRACT FROM AUTHOR]

China’s Ministry of Finance sold Rmb5bn ($755.5m) of offshore RMB bonds on Thursday, and managed to keep the coupons of the two tranches below last year’s levels. But analysts say the sovereign’s success was limited by a modest fundraising target, which partly reflects the shift of focus to onshore Chinese bonds. Noah Sin reports. [ABSTRACT FROM AUTHOR]

Want Want China Holdings became the first issuer from Taiwan to tap the onshore Panda market last week, the company told GlobalRMB. But it is unclear how strong an appetite the food manufacturer has for this asset class, having raised just Rmb500m ($75m) in its debut. [ABSTRACT FROM AUTHOR]

The insurance watchdog in Hong Kong is hoping to mimic Stock Connect as it considers a cross-border access scheme with the mainland market, the renminbi is the fifth most used payments currency, and DBS is planning to set up a securities joint venture in China. [ABSTRACT FROM AUTHOR]

The Chinese Ministry of Finance (MoF) is aiming to raise Rmb10bn ($1.53bn) in its offshore renminbi (CNH) bond auctions in Hong Kong this year. The sovereign issuer is also selling $3bn of notes outside China, marking its second outing in the dollar market in two years. [ABSTRACT FROM AUTHOR]

US president Donald Trump is looking into more vetting for Chinese investments in US technology firms, the People’s Bank of China prepares for another liquidity injection, and the Chinese exchange for small and medium enterprises opens up to foreign investors under two inbound investment schemes. [ABSTRACT FROM AUTHOR]

New benchmark created for interbank bonds, the Institute of International Finance (IIF) projects further inflows into China’s capital markets, and the White House is reportedly going ahead with plans to place tariffs on $50bn of Chinese imports. [ABSTRACT FROM AUTHOR]

FX watchdog loosens its grip on capital outflows for foreign investors, securities regulator lobbies for A-shares to make up more than 0.73% of MSCI’s benchmark emerging market (EM) index, and the governor of China’s central bank hails Shanghai as the prime spot to pilot further liberalisation. [ABSTRACT FROM AUTHOR]

Huo Rongrong, the former global head of RMB and China business at HSBC, has left the bank for Investec Asset Management. The London-based banker will have a broader remit in her new buy-side role. [ABSTRACT FROM AUTHOR]

Bank of China Group Investment (BOCGI) is returning to the Panda market after a year-long absence. Unlike the last transaction, the issuer will sell the bond on the Shanghai Stock Exchange, instead of the interbank bond market, marking its first outing on the exchanges. [ABSTRACT FROM AUTHOR]

An asset manager lists ETF tracking onshore Chinese treasury and policy bank bonds, Schroders launches private fund in the mainland to target the domestic equity market, and China’s foreign exchange reserves shrink by 0.46%. [ABSTRACT FROM AUTHOR]

Strong investor demand for Export-Import Bank of Korea’s renminbi credit took the issuer back to the Formosa bond market on Thursday for a Rmb1.5bn ($234.8bn) outing. The transaction came just over three months after the policy bank sealed a public deal in the same market. [ABSTRACT FROM AUTHOR]

General Motors’ joint venture sealed a Rmb10.4bn ($1.62bn) deal in the Chinese securitization market on June 6, marking its biggest outing so far. Bankers on the deal said the auto company wanted to bag the cash before onshore rates come under pressure in the second half of the year. [ABSTRACT FROM AUTHOR]

FTSE Russell is preparing to kick off the consultation on including Chinese government bonds in the World Government Bond Index (WGBI) this year, GlobalRMB understands. [ABSTRACT FROM AUTHOR]

The gravity in the relationship between Hong Kong and China’s financial markets has unquestionably shifted north in the past two decades. But instead of fearing competition, Hong Kong should embrace this change and build on its leading role in offshore RMB business, senior financial regulatory officials told a forum at the Hong Kong Stock Exchange on Friday. [ABSTRACT FROM AUTHOR]

Shanghai and Hong Kong’s stock exchanges say markets were in good form as the MSCI included A-shares in its benchmark, regulators approve new quotas for outbound and inbound investment schemes, and Aberdeen Standard Investments launches Luxembourg-based fund to tap onshore bonds. [ABSTRACT FROM AUTHOR]