Two Chinese finance companies launched dollar bonds on Tuesday, hitting a market where the recent credit rally appears to be stabilising ahead of interest rate decisions by the US Federal Reserve and Bank of Japan later this week.
However, while secondary markets are showing signs of profit taking, primary market demand remains strong, with China Development Bank Capital’s capped $500 million deal attracting a peak order book of $5 billion.
A second $300 million deal for China Minsheng Investment garnered a more subdued order book of $1.4 billion thanks to its unrated status.
While investment grade spreads widened about 2bp on Tuesday, syndicate bankers...
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