CMBI Credit Commentary Summary
Core Content
This document provides a comprehensive overview of the fixed income market, focusing on the performance of various bonds and the market outlook for Chinese real estate and other Asian issuers. It also includes macroeconomic news, new issue updates, and analyst comments.
Market Performance Highlights
Bond Movements
- GLPSPs/GLPCHI led the market, rising 2.0-3.0pts yesterday and retracing 0.1-1.1pts this morning.
- SUMIBK 6.45 Perp/ECHIAR 29 gained 0.2-0.3pt.
- ACPM 4.85 Perp rose 0.8pt.
- TW lifers traded 1-3bps tighter.
- Japanese insurance subs edged 0.3pt higher amid two-way flows.
- LGFV space bonds were largely unchanged amid two-way flows.
- Quality USD papers saw better buying from RMs.
- Tactical investors sold more in some bonds.
- EHICAR 27' and 29' lost 0.8-1.1pts.
- DEVPHI 2 3/8 03/11/31 fell 0.6pt.
- FORTEB 7 3/4 02/04/30 fell 0.5pt.
- VLLPM 9 3/8 07/29/29 rose 1.8pt.
Top Movers
| Top Performers |
Price |
Change |
| GLPSP 7.865 PERP |
56.8 |
3.0 |
| GLPSP 9 3/4 05/20/28 |
85.5 |
2.7 |
| GLPCHI 7 3/4 04/30/29 |
86.1 |
2.3 |
| GLPSP 4.6 PERP |
52.0 |
2.0 |
| VLLPM 9 3/8 07/29/29 |
38.4 |
1.8 |
| Top Underperformers |
Price |
Change |
| EHICAR 12 09/26/27 |
50.9 |
-1.1 |
| ACPM 4.85 PERP |
76.8 |
-1.0 |
| EHICAR 10 10/14/29 |
45.8 |
-0.8 |
| DEVPHI 2 3/8 03/11/31 |
89.9 |
-0.6 |
| FORTEB 7 3/4 02/04/30 |
102.7 |
-0.5 |
Main Views
Chinese Real Estate
- The contracted sales of 30 developers in April 2026 declined by 5.7% year-over-year (YoY) to RMB137.0bn, marking the lowest YoY decline since February 2025.
- 9 out of 30 developers reported a YoY increase in contracted sales, up from 6 in March 2026.
- In the first quarter of 2026, the cumulative YoY decline in contracted sales was 18.5%, down from 23.1% in the first quarter.
- SOEs such as China Jinmao, China Overseas, and China Resources Land performed better, with YoY sales growth of 23%, 14%, and 2%, respectively.
- Bottom performers included Redsun, Hongsl, and YLLGSP, with sales declines of 71%, 58%, and 57% YoY, respectively.
- CMBI Economic Research expects the PBOC to cut the LPR by 10bps by end-3Q26, which could provide some support to the housing market.
Macro News
- S&P 500 rose by 0.61%, Dow Jones fell by 0.23%, and Nasdaq rose by 1.19% on Tuesday.
- UST yield bull steepened, with yields at 4.01% for 2-year, 4.19% for 5-year, 4.50% for 10-year, and 5.03% for 30-year.
- Chinese authorities are implementing city-specific measures to stabilize the property market rather than a nationwide bailout.
- Local governments are encouraged to convert unsold commercial housing into affordable housing.
Key Information
New Issues (Priced)
| Issuer/Guarantor |
Size (USD mn) |
Tenor |
Coupon |
Priced |
Issue Rating |
| Bocom Leasing Management HK Company Limited |
750 |
3yr |
SOFR+48 |
SOFR+48 |
A2/-/A |
| Chongqing Tongnan Construction Engineering |
45.3 |
3yr |
4.9% |
4.9% |
Unrated |
| Hana Securities |
300 |
5yr |
4.875% |
T+77 |
-/A-/- |
| Yiwu State-owned Capital |
350 |
3yr |
4.35% |
4.35% |
Unrated |
New Issues (Pipeline)
| Issuer/Guarantor |
Currency |
Size (USD mn) |
Tenor |
Pricing |
Issue Rating |
| Shandong Finance Investment |
USD |
- |
3yr |
4.85% |
A2/-/A |
Onshore Primary Issuances
- 142 credit bonds were issued yesterday, totaling RMB141bn.
- Month-to-date, 1,131 credit bonds were issued, raising RMB1,328bn, a 0.6% YoY increase.
Recent News
- China Vanke proposed to repay 40% of the 2 onshore bonds upfront and extend the maturities of the balance by 1 year.
- Xiaomi reported a 10.9% YoY drop in 1Q26 revenue to RMB99.1bn (cUSD14.6bn), and is ramping up its overseas push to offset costs and competition.
- LG Chem sold assets in a US joint venture, L-H Battery, to Honda for KRW3.74tn (cUSD2.47bn).
- NWD received a HKD1bn purchase offer for a commercial site in Hong Kong.
- SoftBank Group appointed banks to work on potential listings of its energy and infrastructure as well as robotics businesses.
- CSI Properties received a HKD892mn (cUSD114mn) loan facility from its joint venture.
- CK Hutchison is considering a dual listing of AS Watson at a USD30bn valuation in 2026.
Summary of Key Points
- Chinese real estate showed signs of stabilization with the lowest YoY decline in contracted sales since February 2025.
- GLPSPs/GLPCHI led the market with significant price increases.
- CMBI expects the PBOC to cut LPR by 10bps by end-3Q26.
- UST yields steepened, with the yield curve showing a tightening trend.
- New issues and pipeline data highlight ongoing activity in offshore Asia markets.
- Market color includes mixed macroeconomic news and developments in various sectors such as real estate, technology, and infrastructure.
Disclaimer and Author Certification
- The report is prepared by CMBIGM and is not a recommendation or advice.
- The author certifies that the views expressed are personal and not influenced by compensation.
- The report is for internal use only and may not be reproduced or distributed without consent.
- CMBIGM may have conflicts of interest due to its investment banking relationships with issuers.
