20231113-招银国际-Fixed_Income_Daily_Market_Update_6页_905kb

Fixed Income Credit Commentary Summary

Date: November 13, 2023

Key Updates

• DALWAN/China Dream: Termination of IPO coordinator (Credit Suisse) is attributed to business restructuring, not stalled IPO progress. The company aims to avoid redemption of pre-IPO investments by FY23 through negotiations, with key factors including financial separation from parent and strong property leasing revenue. IPO completion by FY23 is unlikely.
• LMRTSP (via Analyst Comments): Faces challenges with declining revenues and net incomes; exploring refinancing for 2024-debt, including SGD-denominated loans with higher interest margins. Mall traffic and occupancy rates are recovering but remain below pre-pandemic levels.

China Economy and Policy

• Deflation Concerns: CPI growth revised down to 0.4% for 2023 (from 0.6%), driven by food price declines and weak demand. Policy calls for additional easing, including RRR and LPR cuts. PPI growth also revised down to -3% for 2023 due to energy and commodity softening.

Market Commentary

• Trading Desk: Prices mixed across sectors; Chinese SOEs and TMTs saw modest gains, while Hong Kong properties had mixed performance. New issues included BOCS and BCHINA bonds, with wider spreads on some transactions.

Analyst Insights

• Macroeconomic Recap: US markets rebounded, consumer confidence softened; yields stable.
• Bond Market: Key movers like YLLGSP and VNKRLE underperformed, while LMIRT and China Vanke faced specific events like debt redemptions.

New Issues and Pipeline

• Offshore Asia: New issuances included CICCHK and EXCECP bonds; pipeline activity noted for companies like Country Garden and Sino-Ocean.

Note: This summary extracts key facts without additional interpretation.