Haitong Securities

Chinese real estate firm Zensun Group and local government financing vehicle (LGFV) Guangxi Liuzhou Dongcheng Investment Development Group Co have sold their first dollar bonds, but had to manage their expectations on a busy day for issuance.

Chinese companies came to the international bond market in force on Tuesday, just days ahead of a week-long holiday in the Mainland to celebrate National Day.

Two Chinese companies tapped dollar bond investors on Monday. One of the most active issuers this year, Zhenro Properties Group, came out with an aggressively priced $300m transaction, while a district-level government financing vehicle sold its debut offshore deal.

A range of Chinese issuers, including two property developers and a local government financing vehicle, have raised funds from the dollar bond market.

Chinese local government financing vehicles (LGFVs) Tianjin Binhai New Area Construction & Investment Group Co and Changde Urban Construction Investment Group Co both relied on anchor support for their dollar bonds, after recent negative headlines about the sector.

Mainland China-based Cathay Media Group is eyeing a Hong Kong Stock Exchange IPO, filing a prospectus with the bourse this week.

Chinese real estate developer Longfor Group Holdings raised $850m from a 10 year bond on Monday, taking advantage of a recent ratings upgrade that led to a rally in its secondary price.

Zhenro Properties Group returned to the dollar bond market for the seventh time this year on Tuesday, tapping one of its March transactions for an additional $110m. But the market presented a whole different set of problems for the borrower this time round.

Excellence Commercial Properties Co made a quick outing to the dollar bond market on Friday, raising $150m in its second offshore debt sale of the year.

Dongxing Securities Co leaned on the support of 19 lead banks to close its $400m bond return against a difficult market backdrop.

Changde Economic Construction Investment Group Co, a local government financing vehicle in China’s Hunan province, priced its debut international bond on the back of strong anchor support, in a week where both issuers and investors treaded carefully.

Asia’s primary bond market was quiet for the second day in a row on Tuesday, as investors continued to remain wary about rising tensions between the US and China.