... Chinese property developers, especially those in the `B' rating category on the international rating scale, reap the biggest cost advantage from issuing debt in the domestic bond market ¡ more so than their investment- grade counterparts ¡ with savings for `BB' and lower developers ranging from 300bp to 750bp, according to Fitch Ratings' findings. We believe such `B' rated companies may be more active in China's onshore bond market in 2H15 as they tap into an abundance of idle liquidity. Regulatory Loosening Bolsters Issuance: Issuance of onshore corporate bonds by Chinese developers had reached a record CNY73.8bn by the end-1H15 since the regulators reopened the domestic bond markets to the property sector in mid-2014, while that of offshore Chinese real-estate bonds has shrunk for three straight half-year periods to reach USD7.2bn. Exchange Market Easiest for Non-SOEs: The exchange market ¡ with lower entry barriers ¡ is the most accessible...
