20230720-招银国际-Fixed_Income_Daily_Market_Update_4页_742kb

CMBI Credit Commentary Summary

Core Content

This document provides a detailed market update and credit commentary from the Fixed Income Department of CMBI, focusing on the performance of Asian G3 bonds, new issues, and macroeconomic news. It also includes information about the authors, important disclosures, and distribution restrictions.

Main Points and Key Information

Bond Market Performance

• New Issues:

  • DASEC'26 tightened by 18 bps.
  • SWIPRO issued a RMB3.2bn green bond in two tranches: 2-year tranche at 3.3% coupon (RMB2.5bn) and 5-year tranche at 3.55% coupon (RMB700mn).
  • GRNLGR defaulted on a USD22.5mn principal amortization of the GRNLGR 6.75 06/25/24 bond.

• Secondary Market Activity:

  • LGFVs (Local Government Financing Vehicles) were mixed, with high-quality names showing better buying and real estate-related names experiencing selling flows.
  • DALWAN rebounded 4.25 to 19pts due to short coverings, while SHUIONs bounced 4.5 to 5.5pts by mid-day.
  • DALWAN 23 closed 5pts lower at low-60s, and DALWAN 24s plunged 13.5pts to close at low-30s.
  • Other DALWANs dropped 5-7pts across the curve.
  • SHUION 24s/25s fell another 9.25-11.25pts after a drop of 10-13pts on Tuesday.
  • COGARDs declined 1pt, FOSUNIs moved 2.75-4.25pts lower.
  • Macau gaming names (MGMCHIs, SANLTDs, STCITYs) were marked 0.5pt lower.
  • In India, VEDLNs lowered 0.75pt.
  • In Indonesia, LMRTSPs were marked 0.5pt lower.
  • Chinese properties remained under pressure.
  • Chinese AT1s closed 0.1-0.2pt higher.
  • The HRINTH curve drifted 0.5pt lower.
  • TMT (Technology, Media, Telecommunications) names like XIAOMI, MEITUA, and WB 30s widened around 5bps.
  • Financials, especially AMC (Asset Management Companies), remained under better selling.
  • Chinese SOE (State-Owned Enterprises) perps had active flows, with prices largely unchanged.
  • HK perps performed softly due to property weakness.
  • NWDEVL/LEEMAN Perps were quoted 0.125-0.3pt lower with some PB (Private Bank) selling.

Top Movers

Macro News Recap

• S&P, Dow, and Nasdaq all saw gains on Wednesday.
• US new home construction fell 8% month-over-month (mom), below expectations of +7.2% mom.
• Euro-zone June CPI rose 5.5% year-over-year (yoy), matching market expectations.
• Long-term US Treasury yields dropped, while short-term yields were mostly unchanged.
• The 2/5/10/30-year yields reached 4.74%/3.98%/3.75%/3.84%, respectively.

New Issues (Priced)

New Issues (Pipeline)

News and Market Color

• Onshore primary issuances: 110 credit bonds issued yesterday with RMB77bn raised, and 979 credit bonds issued month-to-date with RMB932bn raised, representing a 12.6% yoy increase.
• BEIPRO: Beijing Properties (Holdings) signed HKD800mn six-month loan documents.
• CENCHI: CCRE mandated Linklaters as legal advisors for offshore debt restructuring.
• CHFOTN: China Fortune Land plans to distribute another 1.64% principal cash to domestic bondholders as part of a restructuring plan.
• VEDLN: Vedanta Resources aims to raise USD400-500mn by July-end to meet S&P's rating review deadline.

Author Information

• Glenn Ko, CFA: (852) 3657 6235 | glennko@cmbi.com.hk
• Cyrena Ng, CPA: (852) 3900 0801 | cyrenang@cmbi.com.hk
• Jerry Wang: (852) 3761 8919 | jerrywang@cmbi.com.hk

Important Disclosures

• CMBIGM or its affiliates have investment banking relationships with the issuers covered in this report.
• The report is for informational purposes only and not investment advice.
• CMBIGM does not assume responsibility for any loss or damage incurred from reliance on the information.
• The information is subject to change without notice.
• CMBIGM may have conflicts of interest and may act as a market maker or principal in the securities mentioned.

Distribution Restrictions

• The report is intended for specific recipients and may not be reproduced, reprinted, sold, or distributed without prior written consent.
• In the UK, the report is only for persons within Article 19(5) of the Financial Services and Markets Act 2000 or High Net Worth Companies, etc.
• In the US, the report is only for "major US institutional investors" and not for the general public.
• In Singapore, the report is distributed by CMBISG, an Exempt Financial Adviser, and may not be provided to non-accredited investors without legal responsibility.