PRIMARY market activity from Greater China is showing signs of stirring. This week saw the quiet launch of a small issue by the Mass Transit Railway Corporation (MTRC), Hong Kong's de-facto sovereign borrower, and moves by the State Development Bank of China (SDB) to select lead managers for a new benchmark dollar financing. Under the sole lead management of Morgan Stanley Dean Witter, a $50m FRN by the MTRC almost passed unnoticed in the primary markets. However, the significance of the private placement was not lost on sector analysts who said that the A+/A3 rated group's decision to launch such a small deal could be put down to one of three factors. "This could simply be an opportunistic trade based on reverse enquiry demand," said one.
August 07, 1998