Bank of Communications

Chinese property developer Country Garden Holdings was forced to pull a Rmb1.8bn ($281.2m) three year Panda bond this week after investors demanded a better return amid rising volatility, writes Noah Sin.

Onshore investors forced red chip issuer Country Garden Holdings to pull a Rmb1.8bn ($281.2m) three year bond on Tuesday. It would have been the real estate company’s first deal in the Panda market since September 2016.

Peking University Founder Group Company and Bank of Communications Financial Leasing Co used keepwell deeds for their dollar bond sales on Thursday, paying a bit of premium for the structure.

Property developer Country Garden Holdings is planning a return to the Panda bond market on Friday, after approaching onshore investors with a Rmb1.8bn ($279.8m) three year bond. It will be the first time the company has sold a Panda in the interbank bond market.

Chinese issuers Peking University Founder Group, Bank of Communications Financial Leasing Co, Geely Automobile Holdings and Jinjiang International Holding are meeting investors this week ahead of planned dollar and euro bond sales.

Three Asian issuers, China Fortune Land Development Co, Luso International Banking and Shandong Hi-Speed Group Co, sold their inaugural bonds on Thursday, taking home $1.15bn between them.

China Orient Asset Management Corp pulled off an end of the year $2bn triple-tranche bond on Wednesday, but was forced to give investors a generous premium to get the deal done.

Shandong Hi-Speed Group Co (SDHS) and China Fortune Land Development Co are both taking bids for unrated three year dollar bonds on Thursday.

China Orient Asset Management Corp launched a multi-tranche fixed and floating rate dollar transaction on Wednesday morning.

Chinese firms Shandong Hi-Speed Group Co (SDHS) and Suzhou Dongshan Precision Manufacturing Co have laid out plans for their respective international bonds.

There was little excitement among investors for Shandong International Trust’s Hong Kong IPO, with the HK$2.95bn ($377.5m) deal priced near the bottom of guidance, according to a banker close to the listing.

One of the last batches of the year’s Hong Kong IPOs kept the market busy this week, even as investors started to wind down for the holidays.