CrédAg closes second Formosa, BoC revises guidance

Crédit Agricole has returned to Taiwan’s Formosa bond with its second offering of the year, several bankers have told GlobalRMB, with banks the dominant buyers of the five year bond. Meanwhile, Bank of China Taipei Branch has revised guidance for its upcoming multitranche deal.... more

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Bank of China selling multi-tranche Formosa with longest ever tenor

Bank of China (BoC) Taipei Branch is marketing a multi-tranche Formosa bond, and will be pricing the deal as early as today (June 8), sources have told GlobalRMB. The deal will include a 15 year tranche, the longest tenor ever for an RMB-denominated bond in Taiwan…. more

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China Banks Rally on Optimism That Bocom Will Lead Reform Drive

Bank of Communications Co. led a rally in Chinese banking shares in Shanghai and Hong Kong on optimism that the government is poised to approve its reform plans.

Bocom, the nation’s fifth largest lender and part-owned by HSBC Holdings Plc, surged by its daily limit of 10 percent in Shanghai and gained as much as 7.5 percent in Hong Kong, the biggest increase in six months. Bank of China Ltd. rose 4.7 percent in Shanghai and China Merchants Bank Co. added 6.9 percent in Hong Kong as of 10:46 a.m. on Thursday.

Shanghai-based Bocom’s final mixed-ownership reform plan was submitted to the State Council about a month ago, people familiar with the matter said yesterday. The lender wants market-oriented systems for decisions on personnel and compensation, the people said, adding that the bank expects the plan to be approved as early as within two weeks.

“The market is expecting banking reform to be implemented soon, with Bocom being the first to test the waters,” said Chen Xingyu, a Shanghai-based analyst at Phillip Securities Research. “This will lend support to Chinese banks’ earnings and shares in the medium term because the reform will better align employees and management’s interests with their performance.”

Bocom said last July that it was studying plans to “deepen” mixed ownership and improve corporate governance as the government urged a new round of financial restructuring. Former Vice President Qian Wenhui said in August that mixed-ownership reform covers areas including ownership structure, management and human resources.

As of March, the finance ministry owned 26.5 percent of Bocom, while HSBC had 18.7 percent.

 

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Quanta winds up dual trancher at $900m

Quanta Computer subsidiary Quanta International, which launched a dual tranche borrowing into general in March, has signed the facility at an increased size of $900m after fully exercising a greenshoe option.... more

 

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Dubai plans RMB derivatives, signs two China MoUs

Dubai Gold & Commodities Exchange (DGCX) is planning to offer renminbi derivatives by Q3 2015. The exchange recently signed a memorandum of understanding (MoU) with Bank of China (BoC) and a separate agreement with the China Futures Association (CFA).... more

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