Details

Dim Sum Bonds

The Offshore Renminbi (RMB)-Denominated Bonds
Wiley Finance 1. Aufl.

von: Hung-Gay Fung, Glenn Chi-Wo Ko, Jot Yau
65,99 €
Verlag:	Wiley
Format:	PDF
Veröffentl.:	18.12.2013
ISBN/EAN:	9781118839645
Sprache:	englisch
Anzahl Seiten:	208

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Titelbeschreibung

A comprehensive guide to understanding and assimilating into dim sum bond markets The expansive growth of the dim sum bond market in the last five years has peaked investor interest and inspired companies to seek out investing opportunities that negate China's capital controls. In a four-pronged approach, Dim Sum Bonds examines the development of the dim sum bond market and its role in China's RMB internationalization policy, characteristics of dim sum bonds and its market, investors' investment objectives and the investment performance of dim sum bonds, motivations of issuers, and underwriters' roles in the dim sum bond market. You will familiarize yourself with every aspect of the dim sum bond market from an issuer, an investor, and an underwriter's perspective. Academics, financial advisors, investment bankers, underwriters, investors, and policy makers should not be without this informative and detailed guide to the offshore market central to China's internationalization of RMB. <ul> <li>Written by Hung-Gay Fung, Glenn Chi-Wo Ko, and Jot Yau, all of whom are experts on the dim sum bond market</li> <li>Explains the rapidly expanding dim sum bond market and puts readers ahead of the curve</li> <li>Landmark issues, Chinese banks (China Development Bank), Infrastructure, red-chip companies (Sinotruk), and multinational corporations doing business in China (McDonald’s) are discussed in detail.</li> </ul> Covering landmark issues from a variety of Chinese and multinational corporations, Dim Sum Bonds provides must-read manual to understanding the vast opportunities of this up-and-coming market.

Inhaltsverzeichnis

Preface xi Acknowledgments xvi List of Acronyms and Key Terms xvii Chapter 1 New Market—Developments, Opportunities, and Challenges 1 1.1 Introduction 1 1.2 Overview of the Dim Sum Bond Market 6 1.3 Policies Supporting the Growth of Offshore Renminbi 8 Chapter 2 Offshore RMB-Denominated Bonds—Dim Sum Bonds 21 2.1 Definition 21 2.2 Bond Issue Characteristics 24 2.3 Conclusion 46 Chapter 3 Issuers 49 3.1 Issuers 50 3.2 Classification of Issuers by Type of Organization 52 3.3 Classification of Issuers by Industry 60 3.4 Classification of Issuers by Domicile and by Deal Nationality 63 3.5 Motivations behind Issuers 67 3.6 Conclusion 75 Chapter 4 Investors 79 4.1 Investor Type and Mix 80 4.2 Motivation 82 4.3 Risk/Return Analysis 86 4.4 Conclusion 98 Chapter 5 Investment Banks and the Dim Sum Bond Issuing Process 101 5.1 Dim Sum Bond Issuing Process 101 5.2 Primary Issues 104 5.3 Bookrunner/Manager Rankings 116 5.4 Bond Issuing Fees 118 5.5 Retail versus Institutional Tranches 118 5.6 Conclusion 119 Chapter 6 Case Studies of Landmark Issues 121 6.1 Landmark Issues 121 6.2 Case 1: The First Dim Sum Bond and the First Chinese Financial Institution Issuer—China Development Bank (and the First 15-Year and 20-Year Bonds) 126 6.3 Case 2: The First Dim Sum Bond Issued by a China-Incorporated Foreign Bank—The Bank of East Asia (China) Limited 131 6.4 Case 3: The First Dim Sum Bond Issued by the Chinese Central Government 135 6.5 Case 4: The First Dim Sum Bond Issued by a Foreign Multinational Corporation—McDonald’s Corporation 137 6.6 Case 5: The First Dim Sum Bonds Issued by a Supranational Agency—Asian Development Bank (and the First 10-Year Dim Sum Bond) 142 6.7 Case 6: The First Dim Sum Bonds Issued by a Chinese Company, Incorporated Outside Mainland China and Listed in Hong Kong (Red-Chip Corporation)—Sinotruk (Hong Kong) Limited 145 6.8 Case 7: The First Mainland Chinese Corporation Listed in Hong Kong (H-share) Issuer of Dim Sum Bonds—Beijing Capital Land Ltd. 149 6.9 Case 8: The First PRC-listed (A-Share) Issuer of Dim Sum Bonds—Gemdale Corporation 153 6.10 Conclusion 157 Chapter 7 Conclusion 159 7.1 Review and Preview of the Development and Growth of the Dim Sum Bond Market 159 7.2 Market Participants 166 7.3 Ongoing Developments Affecting the Dim Sum Bond Market 174 7.4 Final Remarks 176 About the Authors 179 Index 181

Autorenportrait

HUNG-GAY FUNG, PhD, is Curators' Professor of Finance, Dr. Y. S. Tsiang Endowed Chair Professor of Chinese Studies, and department chair in the Finance and Legal Studies Department, College of Business Administration, University of Missouri–St. Louis. His areas of research and teaching include international finance, financial risk management, and banking. GLENN KO, CFA, is an executive director of the UBS Asian Credit Research team, covering corporate credits. He focuses on Chinese properties and industrials. He has extensive experience in Asia's straight and convertible bond markets, with previous work experience in proprietary trading desks, sell-side research, and rating advisory at financial institutions, such as Daiwa, JPMorgan and HSBC. JOT YAU, PhD, CFA, is Dr. Khalil Dibee Endowed Chair in Finance at the Albers School of Business and Economics, Seattle University. Since joining Seattle University in 2001, he has served as the chair of the department of finance and MSF program director. He cofounded Strategic Options Investment Advisors Ltd., a Hong Kong–based investment advisory firm.

Back cover copy

Despite what their name may suggest, dim sum bonds are not fixed-income securities for China's booming food services sector (at least not exclusively), nor are they dumpling-denominated. On the contrary, the dim sum bond market is one of the most exciting new investment arenas to emerge in Asia within this century. A key component in China's long-term strategy for making the renmimbi (RMB) a global reserve currency, on par with the U.S. dollar and the euro, dim sum bonds provide an excellent opportunity for investors who cannot benefit directly from China's economy, but who would like to participate in this fast-growing offshore RMB market. Since its inception in 2007, the dim sum bond market has experienced spectacular growth—a level that is expected to continue well into the foreseeable future. Writing from the perspective of bond issuers, underwriters, and investors, as well as that of the Chinese government, the authors trace the development of the dim sum market and its role in China's RMB internationalization policy. They chronicle key changes to the dim sum bond market since its inception and demystify the primary dim sum bond issue process, highlighting its significant differences from that of the Asian U.S. dollar bond issues. For investors and traders preparing to take the leap into the burgeoning dim sum market, the authors clearly describe the fundamental characteristics of dim sum bonds and the dim sum market, while assessing the investment profiles of the full array of dim sum bonds currently available. In addition, they supply in-depth case studies focusing on landmark bond issues by mainland Chinese financial institutions, the Chinese central government, supranational agencies, China-incorporated foreign banks, Chinese corporations incorporated outside of mainland China, and foreign corporations. They also present cases of issues with special credit enhancement structures, analyzing the prominent features of each, along with descriptions of benchmark issues for ten-, fifteen- and twenty-year bonds. As it is all but certain that the Chinese government will continue to use Hong Kong as the chief hub for businesses issuing dim sum bonds (despite recent initiatives to develop hubs in Singapore, Taiwan, and London), this book focuses primarily on the Hong Kong dim sum bond market. Authoritative, comprehensive, and practical, Dim Sum Bonds is must-reading for investors, underwriters, and asset managers who would like to take advantage of the golden investment opportunities now available in the offshore RMB market.