20231016-招银国际-Fixed_Income_Daily_Market_Update_6页_1mb

Fixed Income Market Update Summary - 16 Oct 2023

Asian IG Benchmarks: Tightened 1-2 basis points; front-end bonds under better buying from AMC firms; HRINTH/GRWALL increased, while CCAML/ORIEAS weakened. LGFVs/SOE Perps remained stable.

Chinese Properties: Contracted sales rebounded in September 2023; 34 developers under radar showed strong growth in some cases (e.g., YUEXIU, CHIOLI), while underperformers like RONXIN and TPHL lagged due to slow recovery despite government measures.

China Policy: Credit growth stabilizing amid policy easing; social financing exceeded expectations in September, driven by government bonds and shadow financing; new RMB loans to households rebounded, but corporate loans remained weak. Policies aim to support economy, with forecasts of moderate GDP growth in 2023-2024.

Trading Desk Insights: Asian markets mixed; SOEs like TENCENT and Baidu's bonds tighter; BB and BBB-rated bonds widened. Chinese AT1s stable, Hong Kong corporates mixed; notable movers include AZUPOE (top performer) and CSCHCN (underperformer). US markets saw mixed performance on Friday.

Offshore Issuances: Zhejiang Kunpeng issued USD 223mn 364-day paper at 6.7%. Pipeline is quiet.

Key News: China's September CPI/PPI unchanged; US yield curve flattened; Azure Power forecast improved, Country Garden received founder loan.

Risks and Disclaimers: Report includes standard disclosures on conflicts, market risks, and the need for independent investment advice.