IHS Markit and Hundsun Technologies create joint venture to bring electronic bookbuilding to Chinese bond markets
IHS Markit, a provider of information, analytics and solutions, has formed 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 electronic bond syndication platforms with Hundun’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 standardised compliant format that optimises workflow and maximises syndicate efficiency.
Adam Kansler, president of Financial Services at IHS Markit, says: “This joint venture is a significant step to help bring greater transparency and efficiency to the fast-growing Chinese bond market.
“We look forward to working with Hundsun to extend the global connectivity of our syndication platforms and drive the adoption of a new solution optimised 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,” says 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 US. The industry is set to transition from manual syndicate workflows to electronic platforms, which will minimise challenges in information reconciliation and other operations risks in the process of bond issuance. An estimated CNY21.72 trillion of bonds were issued in China in the first half of 2019.