Strong demand pushes China bond yields down Strong demand for China's first sovereign bond in more than two years pushed pricing tighter than earlier indications last night. The US$1 billion 10-year tranche was priced with a yield of 4.823 per cent or 53 basis points above 10-year US treasuries, down from an earlier target of 55 basis points over, according to JP Morgan, one of the underwriters. JP Morgan said demand amounted to more than US$2 billion. The 400 million euro (HK$3.61 billion) five-year tranche saw a subscription of more than one billion euros and was priced with a 3.755 per cent yield, equal to 7 basis points over the Euro Mid Swap rate, according to UBS, which underwrote the euro tranche. This was down from an indicated 10 basis points over. The coupon was set at 3.75 per cent. Of the euro tranche, 63 per cent was sold into Europe, while 32 per cent was bought by Greater China investors. SFC gives green light to automated traders Four overseas exchanges and a company have become the first group of licensed automated trading services (ATS) in Hong Kong. The Securities and Futures Commission said yesterday it had given licences to three leading US futures market operators - Chicago Board of Trade, Chicago Mercantile Exchange and New York Mercantile Exchange. It also gave a licence to Australia's SFE Corporation. Bloomberg Tradebook Hong Kong, which formerly operated under a broker licence, will also become an ATS. The five will offer products for investors to trade via the internet. Regulator grants dutch bank a quota for QFII China's foreign exchange regulator yesterday granted a US$100 million investment quota to Dutch bank ING, allowing it to invest in yuan A shares. The approval brought the total investment quota approved for eight qualified foreign institutional investors so far to US$975 million.