20240305-招银国际-Fixed_Income_Daily_Market_Update_6页_1mb

Fixed Income Market Update: March 5, 2024

Asian IG Space

• Asian IG credit spreads widened slightly under profit-taking, with KR and China TMT showing better selling, while China properties remained weak and LGFVs stable. VNKRLE dropped 4 points, and NWDEVL Perps rose 2 points post-D-Park sale announcement.

Macau Gaming

• Macau GGR growth reached 75% of 2019 levels, with strong performance in February (+79% YoY). Sands China saw significant revenue improvement, supporting sector outlook. Preferred names: MPEL, SJM, STCITY/STDCTY.

China Economy

• Manufacturing PMI edged down to 49.1% in February, indicating demand-side weakness. GDP growth forecast maintained at 4.8% for 2024. Services PMI recovered slightly, but employment and construction slowed.

Trading Desk Comments

• Asian IGs saw mixed movements; Chinese corporates like BABA/TENCENT had better buying, while high-beta names like MEITU/LENOVO tightened. Technical support expected for NWDEVLs due to non-core asset sales.

Macro News Recap

• US markets rose sharply, with S&P +0.8%, Dow +0.2%, and Nasdaq +1.1%. US 10-year yield retreated to 4.54%. Chinese policy signs for demand-side stimulus observed.

Analyst Insights

• NWDEVL: Sale of D-Park interests for HKD40.2bn supports bond performance; preferred high-coupon perps. Non-core asset disposals target HKD8bn by FY24.
• Macau Gaming: Strong GGR momentum expected to sustain until M&A impacts.
• China Economy: Requires ongoing demand-side stimulus; cautious growth outlook.

Market Color

• Offshore Asia no new issues priced, but pipeline includes deals by Adani Green and SoftBank.
• Key news: GLPCHI redemption, GEMDAL bond payment, CHJMAO financial loss, and CMBI rating affirmations.