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First ever Saudi Aramco bond receives US$85 billion in orders

After being shunned by Wall Street and international investors last year, Saudi Arabia made a roaring comeback on Tuesday as oil giant Aramco received a blockbuster US$85 billion in orders for its maiden global bond.The order book is likely to be the largest ever seen in emerging markets, covering many times the US$10 billion to US$15 billion Aramco is expected to raise. It’s a sign of investors’ hunger for yield in a world where bonds from some developed nations have negative interest rates… Source link

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It’s time for China to allow foreign credit rating agencies into its US$13 trillion bond market, say experts

International rating agencies must be allowed to operate in China if foreign money is to flow freely into its bond market, said industry experts.China’s US$13 trillion bond market, the world’s third largest, is gradually opening up to foreign players as it starts to join global bond benchmarks.The next key step must be for all global rating agencies to be granted access to the Chinese market, so overseas investors can understand and compare the ratings with those at home, said Nick Gendron,… Source link

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China 

Can China’s bond inclusion on the Bloomberg Barclays Global Aggregate Index save its slowing economy?

The inclusion of yuan-denominated bonds for the first time on one of the most followed global benchmark indices on Monday comes at a critical juncture of China’s economy.Chinese government and policy bank bonds are being added to the Bloomberg Barclays Global Aggregate Index over a 20-month period, a move that analysts predict will draw around US$150 billion of investment into China.China sorely needs to finance its slowing economy especially since its current account, an important indicator of… Source link

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The inclusion of China’s yuan bonds in global bond index is the start of a game-changing shift in global investment patterns

In 1980, sponsors of China’s Yizheng Chemical Fibers desperately needed capital to build a large-scale chemical fibre plant. State-owned financial institutions were unable to help. Having nowhere else to turn onshore, Yizheng issued a US$50 million bond overseas to raise funds, becoming the first Chinese enterprise in the modern era to tap the international bond market. Nearly 40 years on, Chinese issuers don’t have to venture overseas to attract foreign capital; investors are coming to China… Source link

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Bank of China (Hong Kong) launches ‘Greater Bay Area’ bond fund, expects China market to attract US$150 billion in foreign investment

Bank of China (Hong Kong) on Tuesday launched a bond fund for investors in Hong Kong and Macau focused on the region covered by Beijing’s “Greater Bay Area” initiative. It said it expected US$150 billion in foreign capital to flow into mainland China’s bond market over the next 18 months.“This is the first investment fund specifically focused on bonds in the Greater Bay Area, which at the moment has a higher GDP growth rate than that of the San Francisco Bay Area and the Tokyo Bay Area,” said… Source link

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China and Hong Kong stocks slammed as US bond markets signal recession concern

China and Hong Kong stocks slumped on Monday amid a regional sell-off, as an inversion in the US bond yield curve on Friday stoked angst about a recession in the world’s largest economy.The Shanghai Composite Index dropped 2 per cent, or 61.12 points, to 3,043.031 at the close for its steepest decline in two weeks. Hong Kong’s Hang Seng Index also fell 2 per cent to 28,523.35.The sell-off also swept across other markets in Asia, with Japan’s Nikkei 225 gauge tumbling 3 per cent. Triggering the… Source link

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Hopes of compromise as China and the European Union seek common green bond rules

Even as disputes in their bilateral relationship pile up, officials from China and the European Union hope to find common ground on one key global issue: issuance standards for “green” bonds dedicated to financing environmentally friendly projects.Officials from China and the EU – the second and third-biggest issuers of green bonds after the United States – are due to start talks in Brussels on Thursday to decide on standards for the increasingly popular investment vehicle.An agreement would… Source link

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Vietnam 

Emerging East Asia bond market expands but concerns persist – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

Viet Nam News MANILA — Investor sentiment toward emerging East Asia’s local currency bond markets has improved but there are concerns about financial stability in the region, including ongoing trade conflicts, according to the Asian Development Bank’s (ADB) latest issue of the quarterly Asia Bond Monitor.  At the end of 2018, there were US$13.1 trillion in local currency bonds outstanding in emerging East Asia, 2.4 per cent more than at the end of September 2018 and 11.9 per cent more than at the end of 2017. Yields have…

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Hong Kong-listed Link Reit becomes world’s first real estate trust to issue green convertible bond

Link Reit, Asia’s biggest property investment trust, is selling a HK$5 billion (US$640 million) green convertible bond, making it the world’s first real estate company to issue such a bond.In a filing to Hong Kong stock exchange, Link Asset Management, the manager of Link Reit, proposed to sell the five-year paper with a 0.8 to 1.6 per cent coupon.The bond was expected to be priced on or around Thursday.The proceeds will be used to refinance or fund Link’s existing and future eligible green… Source link

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Vietnam 

TCH inks bond issuance contracts with SK investors – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

A view of Golden Land, a real estate project developed by Hoàng Huy Investment Financial Services JSC (TCH). — Photo reatimes.vn Viet Nam News HẢI PHÒNG — Hoàng Huy Investment Financial Services JSC (TCH) on Thursday issued VNĐ1.2 trillion (US$50 million) worth of convertible corporate bonds to South Korean investors. The South Korean investors were Shinhan Investment, CoreTrend Investment and ValueSystem Optimus Protect Private Investment Fund. TCH’s corporate bond issuance was announced early last week. The convertible corporate bonds will mature in three years and the yield…

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