20260713-招银国际-Fixed_Income_Daily_Market_Update_5页_1018kb

CMBI Credit Commentary Summary

📌 Core Content Overview

This document provides a comprehensive summary of the fixed income market performance and key credit updates for the Asian region, with a focus on China and South Korea, as well as other market participants. It includes market analysis, trading desk insights, new issue pipelines, and macroeconomic news highlights.

📈 Market Performance Summary

Asian IG Credits

• Asian IG credits were largely unchanged this morning.
• Market participants were cautious due to abundant new issue pipelines in Japan and South Korea.
• AT1s and LGFVs saw better selling, but prices remained range-bound.
• GLPSP 4.6 Perp lost 0.5pt.
• GLPSP 7.865 Perp gained 0.3pt.
• WESCHI 28 recovered 0.5pt.

Chinese IG Credits

• TENCNT/KUAISH/MEITUA tightened 1bp amid two-way flows.
• TW lifers traded 1-2bps tighter with thin and lackluster volumes.

Japanese Credits

• SUMIBK/MIZUHO/NTT tightened 1-2bps due to active institutional buying.

Higher-Yielding Credits

• WESCHI 28-29 lost 0.8pt.
• LASUDE 26 leaked 0.1pt.
• NWDEVL/VDNWDL complex edged 0.1-0.4pt higher.
• VNKRLE 27-29/LNGFOR 27-32 gained 0.1-0.4pt.
• PTTGC/TOPTB Perps traded 0.1pt higher.
• VEDLN 28-33s closed unchanged to 0.3pt higher.
• Vedanta Resources will fully redeem USD300mn VEDLN 10 1/4 06/03/28 at 102.563 plus interest and USD1.2bn VEDLN 10 7/8 09/17/29 at par plus interest and applicable premium on 17 Jul'26.
• European AT1s overall recovered by 0.1-0.2pt.
• LGFVs were stable to a touch firmer with active two-way flows, especially in on-the-run CNH issues.
• Other CNH bonds edged another 0.3pt higher due to active buying across the curve.

📊 Top Movers

📰 Macro News Recap

• S&P, Dow, and Nasdaq rose by +0.42%, +0.29%, and +0.29% respectively on last Friday.
• UST yields increased, with 2-year at 4.21%, 5-year at 4.30%, 10-year at 4.56%, and 30-year at 5.06%.

📋 Desk Analyst Comments

HONGQI: Positive Profit Alert

• China Hongqiao reported a positive profit alert, expecting a c39% yoy increase in net profit to cRMB18.8bn in 1H26 from RMB13.6bn in 1H25.
• This growth is attributed to higher aluminum alloy ASPs and softer input costs.
• Hongqiao Holdings (002379.CH), HONGQI's key subsidiary, also showed strong 1Q26 results.
• HONGQI's credit profile is supported by ongoing net debt reduction and improving liquidity.
• However, the analysts maintain a neutral stance on HONGQI, as current valuations have already priced in the favorable aluminum price environment.
• CWAHK 5.875 10/22/30 is preferred over HONGQI and other Chinese HY peers due to a more attractive risk-return profile.

Other Key Updates

• CNPC Finance HK was upgraded by Moody's to A1 from A2, reflecting supportive government policies for SOEs.
• SK Hynix expects a severe memory chip supply shortage next year, with demand outpacing production capacity beyond 2030.
• Lai Sun Development secured consent for amendments and accepted USD477.0mn LASUDE 5 07/28/26 for exchange.
• Marubeni acquired 100% of TOLUS Group, making it a wholly owned subsidiary.
• TSMC plans to build three additional advanced packaging facilities in Taiwan.
• China Vanke expects a wider 1H26 net loss to RMB12-15bn (cUSD1.8-2.2bn) due to asset impairment and operating losses.

📌 Offshore Asia New Issues (Pipeline)

📰 News and Market Color

• Onshore Primary Issuances: 64 credit bonds issued last Friday totaling RMB51bn, and 643 credit bonds issued this month with RMB663bn raised, showing a 15.1% yoy decrease.
• Macau Tourism: Aiming to attract more overseas visitors by promoting air travel to Guangzhou and Shenzhen.
• China Jinmao: Unit to lend up to RMB2.8bn to shareholders under a three-year framework agreement.
• TSMC: Building three additional advanced packaging facilities in Taiwan.
• China Vanke: Expected to report a wider 1H26 net loss due to additional asset impairment provisions and losses in certain operating businesses and financial investments.

📌 Important Disclosures

• The information in this report is for informational purposes only and not investment advice.
• CMBIGM is not liable for any loss or damage incurred from reliance on this report.
• The report is not an offer or solicitation to buy or sell securities.
• CMBIGM may have investment banking relationships with the issuers covered in this report.
• The report may not be reproduced, reprinted, sold, or distributed without prior written consent.

📌 Disclaimer

• UK Recipients: This report is only provided to persons falling within Article 19(5) of the Financial Services and Markets Act 2000 or Article 49(2)(a) to (d).
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• Singapore Recipients: This report is distributed by CMBISG, an Exempt Financial Adviser in Singapore, and may only be provided to Accredited, Expert, or Institutional Investors.

📌 Author Certification

• The author certifies that all views expressed accurately reflect personal views and that no compensation was tied to the report's content.
• The author has not traded in or dealt with the stocks covered in the report within 30 days prior to the report's issue.
• No conflicts of interest are assumed, and the report is intended for the use of intended recipients only.