20231030-招银国际-Fixed_Income_Daily_Market_Update_5页_953kb

• Market Sentiment: Improved this morning, with active front-end LGFV flows under better buying. IG property names stabilized from last week's downturns.
• VNKRLE: Shares declined 6-14 points in the last week and moved +0.5 points today. 3Q23 results showed revenue and profits down significantly, with revenue falling 316% year-over-year to RMB894bn and profit attributable to shareholders down 225% to RMB375bn. Liquidity profile is considered adequate due to strong internal resources and low-cost funding.
• China Property: New policy "Guidance No.14" aims to increase affordable housing across the country, prioritizing major cities. Recovery remains slow despite some improvements in high-tier cities; industrial profits for September missed expectations, declining 90% year-over-year.
• Market Movers: VNKRLE ranks as top underperformer, down significantly due to weak results and negative momentum. Top performers include ROADKG and CHJMAO, with gains driven by specific issues.
• Macro News: US yields and indices were mixed on Friday; China industrial profits were below target for the first half. New affordable housing policies and corporate actions (e.g., debt repayments) were highlighted in onshore media.
• Analyst Comments: Focus on VNKRLE's financial health, with adequate cash and reasonable financing costs, but continued challenges from the property sector slow recovery.

The report emphasizes that market sentiment is cautiously optimistic, with key risks in the property sector.