Home 

Chinese bond momentum remains strong, but don’t expect the yuan rally to last

The Chinese bond market got off to a solid start in 2019, building on the strong momentum from last year that saw China buck the global trend to deliver positive returns to investors.  The onshore rates rally continued in January, thanks to further easing by the People’s Bank of China and strong foreign demand for renminbi bonds – prompted, at least partly, by expectations that China would soon be included in the global fixed-income benchmark. However, the bigger price action occurred in the credit market, particularly hard-currency (US dollar) Chinese…

Read More
Home 

Chinese investment giant CMIG misses bond payment, sending shockwaves through US$11 trillion market

An investment giant backed by dozens of the biggest Chinese firms and dubbed the “the aircraft carrier of China’s private companies” by local media has partly suspended trading of its bonds after missing a repayment. The case underlines the mounting pressure in the country’s US$11 trillion bond market, said analysts, as a liquidity crunch forces an increasing number of heavily indebted companies to the brink of default. China Minsheng Investment Group (CMIG) has stopped taking bids for three of its bonds “due to recent price volatilities”, according to a filing…

Read More
Vietnam 

Securities, bond markets set for strong 2019 – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News Trần Văn Dũng, chairman of the State Securities Commission, speaks to Vietnam News Agency about the securities market’s prospects this year following negative growth in 2018. What’s your assessment of the size and quality of the stock and bond markets? The Vietnamese economy developed strongly in 2018 with macroeconomic indicators such as GDP growth, import-export turnover, inflation, the exchange rate, interest rate and budget spending meeting or beating targets set by the National Assembly. The securities market, despite seeing a strong decline due…

Read More
China 

S&P Global get the nod to enter China’s bond rating market

Chinese regulators have allowed S&P Global Ratings’ Beijing-based wholly owned unit to conduct credit rating business on the mainland, according to a statement from the People’s Bank of China. The credit assessor is now allowed to register for bond rating service in China’s interbank market. The PBOC did not mention Moody’s Investors Service and Fitch Ratings in its announcement on Monday. Will licence to operate for US rating agencies equate quick entry into China’s bond market? Far from it The introduction of international rating firms will meet foreign investors’ demand…

Read More
Investment 

Potential white knight waiting in the wings as private sector bond defaulter struggles to restructure debt

China Singyes Solar Technologies Holdings, whose shares fell as much as 72 per cent in Hong Kong last week after a three-month trading suspension, is in talks with at least three potential buyers for its assets. The Zhuhai, Guangdong-based solar farm operator had defaulted on a one-year, US$160 million offshore bond in October and is in danger of defaulting on another two-year, US$260 million offshore bond due next month. China Singyes plunges, highlighting cash flow woes of China’s private companies and solar industry “Since news of our default broke, many…

Read More
Home 

Bond default by China’s best-performing stock in 2019 sends shares slumping in Shanghai

The one-way ride on the most speculative stock on China’s market this year seems to be unravelling. Shares of Wintime Energy, the best performer on the CSI 300 Index with gains exceeding 60 per cent in 2019, tumbled by as much as 9.8 per cent to 1.84 yuan in Shanghai on Wednesday. Almost 5 million shares of the coal producer changed hands, more than eight times its 180-day average, according to data compiled by Bloomberg. The sell-off was spurred by an overnight exchange filing from Wintime that it had defaulted…

Read More
Vietnam 

Việt Nam needs a better Government bond market – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News In recent years, the Government bond market has become an important capital mobilisation channel for Việt Nam. However, the scale of the country’s bond market is modest compared to national economic scale and to other regional countries. Nguyễn Thị Kim Oanh, chairwoman of Việt Nam Bond Market Association (VBMA), speaks to Vietnam News Agency about proposals to make the Government bond market more attractive. According to a report of Hà Nội Stock Exchange (HNX), Government bond mobilisation dropped sharply last year in terms of…

Read More
Home 

Hong Kong highlights its role as a green bond hub for mainland firms

Hong Kong and mainland Chinese finance regulators have joined forces to promote the city as a green finance hub, inviting dozens of mainland companies to explore the benefits of fundraising with a view to ethical and social benefits. More than 50 mainland banks and businesses have been invited to a three-day visit to Hong Kong, where officials from the Hong Kong Monetary Authority, People’s Bank of China and the Green Finance Association will brief them on how they can tap the city’s financial infrastructure for cheaper foreign currency financing. “[The…

Read More
Investment 

Chinese solar farm operator seeks to resolve bond defaults as end of subsidies casts shadow over industry

China Singyes Solar Technologies Holdings, once the mainland’s leading solar developer, is seeking to resolve bond repayments worth 967 million yuan (US$142 million) it had defaulted on in October. The Hong Kong-listed company, focusing on operating solar farms and building solar curtain walls, had defaulted on 202 million yuan of offshore loans and 765 million yuan of onshores loans at the end of October, it said in a stock exchange filing on Thursday. Chinese solar power stocks plunge as government moves to contain industry size Singyes Solar said it has…

Read More
Vietnam 

Value of IPOs and corporate bond issuance hits five-year high – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News HÀ NỘI — Issuance value of corporate bonds in Việt Nam reached a five-year high of VNĐ39.45 trillion (US$1.7 billion) in 2018, data from Bảo Việt Securities Co (BVSC) showed. The total value of additional shares issued, initial public offerings (IPOs) and corporate bonds hit VNĐ83 trillion ($3.56 billion), its highest level since 2014. IPO value also hit a five-year peak of VNĐ21.94 trillion ($942 million), eight times higher than the value recorded in 2017. However, the value of additional shares issued was just VNĐ21.76…

Read More