20220803-招银国际-Fixed_Income_Daily_Market_Update_4页_775kb

报告摘要

CMBI Credit Commentary Summary

Core Content Overview

This document is a Fixed Income Daily Market Update from CMBI Fixed Income Department, providing insights into the current state of the Chinese and Asian fixed income markets, along with macroeconomic news and new issue activity.

Key Market Observations

Chinese Market Activity

SOE Perps (State-Owned Enterprise Perpetuals):
- Sought after by Chinese buyers, leading to a price increase of ~0.5 bps this morning.
- SOE perps showed higher preference over LGFVs (Local Government Finance Vehicles) after Chinese AM resumed deployment.
LGFVs:
- Overall quiet, with weak names facing better selling.
- Offshore LGFVs slightly better selling, while onshore were happy to take cheap offers.
AT1 (Additional Tier 1 Bonds):
- Continued calm after previous active short covering.
Macau Market:
- Gaming names fell 3-5pts yesterday afternoon and 2-3pts this morning due to uncertainty over epidemic policy.
- The state of immediate prevention was terminated on 2 August, but market sentiment remained cautious.

U.S.-China Tensions

Escalated macro risks:
- Taiwan and Korea names widened yesterday and recovered slightly today due to short covering.
- Unstable macro conditions may be exacerbated as China plans military exercises in the coming days.
U.S. Treasury Yields:
- Increased due to U.S.-China tensions.
- Yield curves flattened with 2/5/10/30-year yields at 3.06%/2.85%/2.75%/3.00%, respectively.
Fed Policy Outlook:
- Hawkish opinions on future interest rates raised concerns, with a 75bps hike possible in September if inflation remains uncontrolled.

Trading Desk Comments

Chinese IG Market:
- Spurred risk-off bets due to concerns over Nancy Pelosi's visit to Taiwan.
- IG spreads mixed, with financials showing benchmark spreads buoyed by rate moves.
AMCs (Asset Management Companies):
- GRWALL/HRINTH notably tightened by 30-60bps.
TMT Sector:
- BABAMEITUA went weaker alongside stocks due to geopolitical tensions.
Hybrid (HY) Market:
- Chinese HY space felt weaker due to macro and geopolitical uncertainties.
- COGARD and CIFIHG fell by 3-4.5pts and 2-3pts, respectively.
Distressed Names:
- CENCHI '22 closed 2pts lower on Tuesday, while the par-pull of CENCHI '22 due on 8 August continued.
- KWGPROs due Sep'22 remained largely unchanged at ~40s level.
Short Sellers/Dealers:
- ZHAPIE '25/ZHANLO '25/GETDZS '25 showed signs of a short squeeze due to difficulty in locating loose bonds.
Regional Trends:
- Macau reversed its recent trend to a sell-off due to the strict quarantine policy still being an overhang.
- SANLTD/WYNMAC opened higher but ended down by 3.5-6pts.

New Issue Activity

Offshore Asia New Issues (Priced)

Suzhou City Construction Investment Group (Holding) Co., Ltd.:
- Issued USD200mn 3-year bonds with a 6.00% yield and BBB- rating.
Jinan Hi-tech Holding Group Co., Ltd.:
- Issued USD300mn 3-year bonds with a 5.50% coupon and 5.50% yield and BBB rating.

Offshore Asia New Issues (Pipeline)

Danyang Investment Group Co., Ltd.:
- Proposed USD3-year bond with an IPG of 6.40% and unrated.

Macro News Recap

U.S. Stock Market:
- Continued to decline on Tuesday, with S&P, Dow, and Nasdaq down by -0.67%, -1.23%, and -0.16%, respectively.
Chinese Central Bank:
- Set the goal for the 2H22 conference to provide credit support for enterprises and focus on infrastructure construction.
Onshore Primary Issuances:
- 43 credit bonds issued yesterday totaling RMB68bn.
Corporate Bond Activity:
- Kunming Traffic Investment raised RMB780mn via a 2-year bond at 5.00%.
- Powerlong Real Estate approved proposals to exempt meeting procedures, adjust repayment, and add credit enhancement measures.
- Shanghai Shimao Jianshe scheduled put option exercise for "19Shimao01" bonds on 5-9 Aug'22.
- China Vanke proposed to issue RMB8bn 10-year corporate bonds.
- Yunnan Construction and Investment proposed to issue RMB1bn 90-day super short-term bills.
- Fitch affirmed Yuexiu Property's LT Foreign-Currency IDR at BBB- with a Stable Outlook.
- Times China was downgraded to 'C' from 'CCC+' by Fitch.

Important Disclosures

The report is not investment advice and should not be relied upon for investment decisions.
CMBIS does not provide individually tailored investment advice.
The value and returns of investments are uncertain and not guaranteed.
The information is for internal use only and not for distribution to third parties without prior written consent.
The report is subject to change and not liable for any loss incurred by relying on its contents.

Disclaimer

United Kingdom:
- This report is only provided to persons falling within Article 19(5) or Article 49(2)(a) to (d) of the Financial Services and Markets Act 2000.
United States:
- CMBIS is not a registered broker-dealer in the U.S. and this report is intended solely for major U.S. institutional investors.
Singapore:
- This report is distributed by CMBI (Singapore) Pte. Limited, an Exempt Financial Adviser regulated by the Monetary Authority of Singapore.