Shanghai Industrial completes exchangeable

Investment arm of the Shanghai government returns to the equity-linked market for the first time since 1998.

HSBC completed a HK$2.33 billion $300 million exchangeable by Shanghai Industrial Investment Treasury into red chip Shanghai Industrial Holdings yesterday Wednesday.

Similar to Shangri-La Asia's deal last week, Shanghai Industrial used a five-year bullet maturity, but with more aggressive terms. Partly this reflects the performance of Shangri-La's $200 million convertible, which has traded up to 103% bid in the week since launch and partly the existence of plentiful stock borrow, which should...

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