Real estate dominates China HY but regulation hurdles loom

Chinese real estate firms have been the source of many of Asia’s high yield deals in the past few years. The landscape is changing, however, due to a complex mix of Chinese regulatory efforts to make domestic capital markets more accessible for issuers, prolonged renminbi volatility that has lowered the appeal of dollar funding, and increasingly stringent rules set by China’s National Development and Reform Commission that control offshore issuance by domestic firms. The NDRC recently went as far as naming and shaming issuers circumventing such procedures.