IFR: It’s all part of trying to reduce this structural subordination for a company that has most of its assets onshore and is borrowing offshore. WALLACE LAM, HSBC: Even if the company has no assets offshore, the keepwell is still stronger than a letter of support, which was previously used by some of the very large SOEs. The keepwell that we incorporated as part of the GEmdale deal, it was actually significant in being a contractual legal obligation. It’s not a financial guarantee but it offers

IFR: Welcome. The outlook for China’s corporate sector in the international bond markets is on everyone’s mind after a surge of offshore debt issuance from China over the last couple of years. So to kick things off, what’s behind that trend, and is it going to continue? WALLACE LAM, HSBC: On one hand, there is a need for capital among fast-growing corporations in China. On the other hand, China corporate bonds offer some very attractive yields as compared to similarly rated entities from around

IFR Asia China Corporate Funding Roundtable 2014: Roundtable participants Wallace Lam HSBC Wallace Lam is managing director and head of high yield capital markets and commercial banking debt origination, Asia, sitting within the bank’s capital financing group. Outside of his professional career, he is a member of the Supervisory Board of the Hong Kong Housing Society. He also served as an external mentor for the Central University of Finance and Economics between 2009 and 2012, and is a permanen

Corporate China is embracing overseas bonds as never before, taking advantage of low fixed-rate funds in US dollars either to fuel expansion plans or trim borrowing costs. This push is stepping up the pace of China’s internationalisation and transforming the Asian capital markets. From 2% in 2009, mainland China issuers now account for 40% of all new dollar bonds sold in the region this year. This staggering statistic, however, has sparked some serious discussions. Can China’s companies keep up