Electronic Bookbuilding For Bonds To Launch In China


IHS Markit, a world leader in critical information, analytics and solutions, today announced the formation of a joint venture with Hundsun Technologies (Hundsun) to deliver a new, end-to-end electronic bookbuilding solution for bond syndication in mainland China.

The joint venture, to be incorporated in Hangzhou, unites IHS Markit’s global, leading electronic bond syndication platforms with Hundsun’s domestic market expertise and institutional investor network. The new solution will enable banks to collaborate in real-time to publish new deals to the market, communicate terms and share other critical deal information to sales desks, other banks and on- and off-shore investors in a standardized, compliant format that optimizes workflow and maximizes syndicate efficiency.

“This joint venture is a significant step to help bring greater transparency and efficiency to the fast-growing Chinese bond market,” said Adam Kansler, president of Financial Services at IHS Markit. “We look forward to working with Hundsun to extend the global connectivity of our syndication platforms and drive the adoption of a new solution optimized for the domestic fixed income market.”

“China is accelerating the pace of opening its market. Through the introduction of IHS Markit’s international experience and advanced platforms, we are excited to develop a best-in-class electronic bookbuilding solution for the domestic market,” said Peng Zhenggang, chairman of Hundsun. “The formation of our first Sino-foreign joint venture will also help us explore new business opportunities globally.”

China is the world’s second-largest bond market after the United States and the industry is poised to transition from manual syndicate workflows to electronic platforms, which minimize challenges in information reconciliation and other operational risks in the process of bond issuance. An estimated 21.72 trillion yuan (over $3 trillion) of bonds were issued in China in the first half of 2019.

The IssueBook, IssueNet, Deal Monitor and Investor Access services, operated by IHS Markit in partnership with the investment community, are the leading electronic platforms used for bond syndication in all regions outside of mainland China. Currently, there are over 200 banks and more than 360 asset managers on the network.

Hundsun Technologies was founded in Hangzhou in 1995 and listed on the main board of the Shanghai Stock Exchange in 2003. Hundsun is a leading Chinese provider of financial software, technologies and network services to institutional capital markets, supporting brokerage and trading, middle and back office and trustee operations. Hundsun’s customers include top Chinese banks as well as securities and futures companies, funds, trusts, insurers, exchanges and private equities. In September 2019, Hundsun was selected in IDC FinTech’s Global 100 for the 12th consecutive year, ranking 43rd.

Creating the joint venture was the subject of a memorandum of understanding signed by IHS Markit and Hundsun in January 2019.

Source: IHS Markit


Related articles

  1. Trading Europe From ‘Across the Pond’

    The faster set up of new bonds means clients can service early secondary execution more quickly.

  2. Tokenization of bonds is one of the initiatives financial institutions are most eager to pursue.

  3. BlackRock estimates bond ETFs will reach $5 trillion in assets by the end of the decade.

  4. Clearinghouses Ease Transition to Basel III

    Responsibility for initiating this process lies with the bond issuer.

  5. ISDA survey shows variety of views on whether increased clearing would improve resilience and efficiency.