China, Russia, Yingde Gases in focus; Ukraine trading quiets

By Christine Van Dusen

Atlanta, Dec. 23 – Emerging markets investors kept an eye on China, Russia and China-based Yingde Gases on a quiet Friday ahead of the Christmas holiday.

Regulators in China have decided to allow international investors to hedge their currency risk in China’s foreign-exchange derivatives market.

“China’s policymakers are implementing measures to support the national bond market. It is important for preventing funds outflows from the country,” according to a report from Schildershoven Finance BV. “Additionally, investors will have an opportunity to hedge interest-rate risk. Other measures include trading hours extension and better infrastructure.”

Meanwhile, China’s Yingde Gases was under scrutiny as former directors blocked the possible issuance of shares.

The company could face a debt acceleration.

“According to the company, this is a new step undertaken by former directors to frustrate the proposed issuance of shares,” Schildershoven said. “The company added that it needs to repay its short-term bank debt and has not done it due to mentioned reasons.”

Yingde’s bankers are negotiating with management, the report said.

“The company commented that it would face a default if failed to issue shares,” the report said. “Volatility may continue to be high in this story.”

Also on Friday, Russian President Vladimir Putin was expected to discuss Syria and Turkey during his scheduled conference. Those comments “may affect the market,” Schildershoven said. “However, his previous conferences did not reveal any market-important information.”

Looking to Ukraine, bonds headed into the end the week with limited activity, said Svitlana Rusakova of Dragon Capital.

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