.png)
GC Asia
Latest comment
-
China bonds: transparency push a clear win
The Shanghai Clearing House’s decision to give bond issuers insight into the holders of their debt is a smart move. China has enough regulation; what it lacks is information.
08 Jul 2020 -
Chinese coupon cuts: A dangerous game
Chinese issuers have been slashing the coupons on their onshore puttable bonds in an attempt to save money. They are playing with fire.
09 Jun 2020 -
China Reits are not for all
China has taken a long-awaited step towards opening its real estate investment trust (Reit) market, publishing rules for a pilot programme. The regulators are understandably starting small, but the guidelines don’t do enough for companies that need to list Reits the most.
14 May 2020 -
China bond investors deserve better treatment
Do investors matter in China’s bond market? Not much, judging by a recent series of bondholder meetings. HNA Group Co and Gemdale are the latest companies to push their luck. It is time for regulators to push back.
23 Apr 2020 -
China moves to simplify its bond regulation landscape, but alphabet soup still confuses more than clarifies
China has launched a streamlined system for corporate bond issuance. The move should be applauded — but it further muddies the waters in China’s regulatory system, writes Rebecca Feng.
05 Mar 2020 -
China ABS: BMW will not be overtaken
BMW sold an ultra-cheap auto loan securitization in China last week, giving a clear demonstration of investor appetite for highly-rated credits despite the coronavirus epidemic. But other auto financing companies (AFCs) should be realistic about their chances of repeating this success, as liquidity is drying up quickly.
27 Feb 2020 -
China needs to get going on TLAC bonds
Crédit Agricole bagged a total loss-absorbing capacity eligible senior preferred Panda bond in China last week — the first of its kind onshore. But the confusion it created shines a light on a market that is still in dire need of education around these new structures. With Chinese banks set to come under pressure soon to issue their own TLAC-eligible bonds onshore, rapid change is needed before time runs out.
10 Dec 2019 -
How foreign securities houses should enter China
Foreign banks hoping to break into China’s capital markets will have an open invitation at the end of next year, when final restrictions on their ownership of securities houses are removed. They will have some small successes with secondary trading but muscling in on primary capital markets will prove expensive ─ and risky.
13 Nov 2019 -
China DCM scores: decent idea, poor execution
Chinese regulators are planning to rate the bond underwriting ability of securities firms. That may appear a sensible solution to an exchange bond market that has become cutthroat and chaotic. But the proposed solution is too vague to have much impact.
22 Oct 2019 -
China reforms QFII, RQFII but leaves critical problems untouched
China’s move to remove the quota limits on the Qualified Foreign Institutional Investor (QFII) and renminbi QFII (RQFII) schemes could help in the long-term development of the country’s financial market. But this is not nearly enough. If the regulators want to see some serious change, they need to tackle two key hurdles facing foreign investors.
17 Sep 2019
