20250707-招银国际-Fixed_Income_Daily_Market_Update_5页_854kb

Fixed Income Credit Commentary

Date: 7 Jul 2025

Market Update

Asia IG

• Asian IG trading was light due to US holidays.
• Key movements:
  • NHSECS/KORGAS 28-30s tightened 1-2bps.
  • CNMDHL 28 tightened 2bps; CNMDHL 26 widened 7bps.
  • HEARTIG bonds: MEITUA 30s/TENCNT 28s widened 1-2bps.
  • BABA/CNOOC 43-54s stronger. Financials (NSINTW/SHIKON 34-35s): tightened 2-5bps.

Chinese IG

• Corporate bonds: HNSDCC 7 26s/LUOYNG 7.5 26s compressed 25bps in CNH.
  • BTSDF 9.125 07/24/28 closed lower YoW. HYSAN/CKPH/CKINF down.
  • LGFVs: high demand in CNH; CTFSHK/ROADKG fluctuated.

USD Market

• Bonds: BADNHI 6.9 28s sold; QINLID 5.9 28s bought.
• SOE perps: CHPWCN up 0.1pt; SPICPE down 0.1pt.

Credit Highlights

1. BTSDF:

   • 1H25 adj. net profit expected to grow 15% YoY, despite ATO tax dispute.
   • Analyst maintains "Buy" on BTSDF 9.125 with YTM 8.5% and higher yield pickup.

2. FEC Deal Extension:
   Far East Consortium (FEC) extended termination date with Star to 31 Jul 25.

New Issues

• Offshore Asia (Priced): Tai An Construction $90.2m, 3yr at 6.9%.
• Offshore Asia (Pipeline): Lotte Property (3yr), Shinhan Financial (5yr+$).

Key News

• Macro: US markets closed, 10-yr yield 4.35%.
• Corporate: ATO tax dispute with BHA (AUD$407m demand).
• Other: H&H: revenue growth expected, PNC segment improving.
• USD and sustainability updates: Fantasia bonds; renewable projects; Sinopec/Lotte.

Analyst Comments

• BTSDF: "Buy" recommendation supported by H&H's funding access and extended maturity.
• Perfs/Tops: CNOOC, NWDEVL; EHICAR, WESCHI underperformed.

Disclaimer:
Investment risks noted. Information not personalized. Use at own risk.