China Merchants Securities Co

Ford Automotive Finance sold a Rmb4.776bn ($694m) four-tranche auto loan ABS on Tuesday, its biggest ABS so far, pricing the three senior tranches at tight levels.

Ford Automotive Finance is set to join the Chinese auto loan ABS issuance spree with a Rmb4.776bn ($695m) four-tranche deal on July 23. After this transaction, the originator will have raised a chunky Rmb31.6bn from the market since its debut five years ago.

A wave of issuers — mostly Chinese — including China Mengniu Dairy Co and local government financing vehicle Guangzhou Development District Financial Holdings flooded the bond market on Thursday, riding the positive sentiment after the US Federal Reserve chairman Jerome Powell signalled a rate cut later this month.

The Hong Kong Stock Exchange is sifting through three IPO applications submitted by Chinese companies in three different sectors this week.

China’s Jinxin Fertility Group has raised HK$2.99bn ($381.9m) from its Hong Kong listing after riding a wave of investor demand for healthcare stocks.

China’s Hansoh Pharmaceutical Group has priced its HK$7.9bn ($1bn) Hong Kong Stock Exchange offering.

Hansoh Pharmaceutical Group kicked off the roadshow for its Hong Kong listing this week, with up to HK$7.9bn ($1bn) of proceeds in its sights. The deal got off to a strong start with the help of a cornerstone group that included Singapore’s sovereign wealth fund, as well as an early turnout from international institutions. Jonathan Breen reports.

Mercedes-Benz Auto Finance pulled off its biggest auto loan ABS deal to date on Tuesday at its tightest price since 2017, despite a last minute regulatory probe into the originator. But the apparent success owed plenty to the lead underwriters’ co-ordinated efforts to keep the issuer happy and the primacy of credit ratings to international buyers, writes Rebecca Feng.

China Construction Bank sold a Rmb10.25bn ($1.53bn) four-tranche RMBS on Tuesday with an international rating.

Mercedes-Benz Auto Finance is on track to price its largest ABS trade under the Silver Arrow China series. The originator, having previously turned to Moody’s and Fitch for international ratings, switched to S&P and gained an AAA rating for its deal.

China Construction Bank is looking to close its Rmb10.25bn ($1.53bn) Jianyuan 2019-2 residential mortgage backed securities transaction next week. The deal has an AAA international rating from S&P.

Geely and Dongfeng-Nissan will return to the Chinese auto loans ABS market next week with a total of Rmb7.4bn ($1.1bn) of paper. But while China’s auto loans ABS market has been dominated by auto finance companies (AFCs), Ping An Bank will soon bring the first internationally rated auto loan ABS originated by a commercial bank.