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ING BARINGS is on the verge of admitting defeat by pulling Heilongjiang Agriculture's $200m IPO this weekend. But while the move deepens the gloom settling over China's H-share sector, Goldman Sachs will launch Shandong International Power next week, apparently safe in the knowledge that 40% of the sale is covered by a strategic investor. The conflicting news crowns a week of worry for Hong Kong's equity capital market bankers. Amid a steadily worsening stream of results from once star performers, such as China Southern in the red chip and H-share sector, the withdrawal of the -- albeit small -- Zhujiang Steel Pipe Holdings IPO further demonstrated the instability of the market.

HONG KONG corporates displayed a rare burst of activity in the domestic and international debt markets this week with issues from three of the territory's leading names: Mass Transit Railway Corporation (MTRC), Hutchison Whampoa and Sun Hung Kai Properties. After years of heavy reliance on the extremely cost efficient Hong Kong dollar denominated syndicated loan market, the emergence of all three borrowers in the domestic fixed rate bond sector proved a surprising and welcome development for the local market.

Australia The Australian government has appointed ABN Amro, Credit Suisse First Boston and JB Were as co-ordinators for the sale of a further 16% stake in telecom company Telstra. The line-up is identical to that for the successful first tranche sale in November 1997.

AMP BANK Ltd this week became the first major issuer of 1999 in the domestic Australian dollar debt market, launching a debut A$200m three year fixed rate deal. Led by Westpac, with ABN Amro and Warburg Dillon Read as dealers, the issue was priced at 99.63 with an annual coupon of 5% to yield 59bp over government bonds. Launched off an A$1bn domestic TCD/MTN programme, the issue was swapped into floating rate obligations, locking in a spread of 15bp over bank bills.

* Merrill Lynch is to launch the sale of stock in Gilat Satellite Networks, the Israeli manufacturer of satellite telecommunication network hook-up systems. The group already has a full listing in the US market on Nasdaq after going public in 1993 in a deal that was led by Oppenheimer. Since then it has established a secure core of established shareholders that was further enhanced through its secondary stock offering in 1995 led by Goldman Sachs. The forthcoming deal could raise up to $275m and will involve the sale of stock to international and local investors.

THE LATIN new issue market has been left in tatters, with major issuers abandoning plans for euro and dollar denominated issues and underwriters predicting little chance of any issuance in the foreseeable future now that Brazil has descended into a full blown currency crisis. Argentina had been planning a euro deal for this week to take advantage of a rally on the back of Brazil's decision to float the Real last Friday.

AN EASING of investor concerns over the economic situation in Brazil -- for the time being at least -- looks set to smooth the Eurobond funding path for central and eastern European sovereign borrowers. By Thursday's close in London, JP Morgan's Emerging Market Bond Index had tightened to 1,300bp over Treasuries from nearly 1,500bp a week ago, reflecting the gradual improvement in investor sentiment.

SPECULATION was rife this week that the Republic of Turkey is to opt for a legacy currency issue for its first Euromarket transaction in 1999. Market participants say that the B1/B rated sovereign is poised to launch an expected DM200m three to five year offering, possibly as early as next week. Commerzbank has been widely touted as the bookrunner of the proposed issue, but officials at the bank denied that it had been mandated to lead such a bond.

* Australia & New Zealand Banking Group Ltd Rating: Aa3/AA-

NATIONAL GRID, the acquisitive UK power transmission group, this week raised £1.2bn through the sale of one third of its 74.3% stake in Energis, the telecommunications group. The divestment was praised as a shrewd move on the part of the vendor, taking advantage of the buoyant market for telecom stocks. Many telecom shares have risen by up to 40% since September, on the back of the combined recovery in global stockmarkets and the strong wave of global consolidation sweeping through the industry. The latest and largest deal involves the $62bn purchase by Vodafone of AirTouch.

MORGAN STANLEY Dean Witter is to lead the sale of stock in Equant, the Atlanta and Amsterdam-based data communications carrier. The US firm has the books on this prized mandate after leading the group's $810m IPO last year with Salomon Smith Barney. The sale should raise around $3.5bn based on the current valuation attached to the company's shares.

SG THIS WEEK launched Eu600m of convertible bonds for Promodes, the French retail group. The issue underlined the vibrancy of the market for hybrid securities in the new currency, as well as the pole position rapidly grabbed by SG in the new sector. SG kicked off the year with a Eu1.5bn convertible for Vivendi, the French utility and media group.