bonds

Slowing loans, M&A and ECM hit banks' fees last year. Technology, exports and bonds are bright spots, while Hong Kong is increasingly being seen as a place to raise foreign capital. PBOC's governor Pan Gongsheng wants a proactive policy approach.

The record issuance in US dollars, Hong Kong dollars and CNH, includes several 30-year tranches.

Refinancing needs, fewer defaults, falling interest rates, sustainable bonds, and support from banks, are all fueling demand.

The Asian Infrastructure Investment Bank is an anchor investor in SPV Bauhinia 2, which contains a $107m sustainability tranche; meanwhile, the Hong Kong Mortgage Corporation will have a new CEO in December.

The Credit Suisse crisis shows that the bonds don't necessarily provide stability to banks and investors as designed; APRA has proposed a different capital framework from January 1, 2027.

The transaction is one of the largest HKD-denominated issuances to date; however, the SAR's property market is tough, with giant New World Development set to announce its first loss in 20 years.

In addition, there is growing demand for issuance in Asia's renewables market and also for private credit, according to senior managers at the bank.

Beijing will issue a spree of special-purpose bonds in order to help meet the ambitious GDP target, but more reforms are likely needed to boost output.