SINGAPORE, July 17 (IFR) - Weaker US inflation was a bigger driver for Asian
markets today than stronger-than-expected China growth figures, meaning credit
was generally firmer.
"Markets are reacting more to Treasuries than China GDP," said a trader.
"Treasuries opened higher so there has been some selling on that, but nothing
out of the ordinary."
Chinese GDP grew at 6.9% year-on-year in the second quarter, the same rate as
the first quarter. This beat expectations of analysts, who had thought growth
would slow slightly.
Industrial output rose 7.6% in June from a year ago, better than expected, and
above the 6.5% annual increase seen in May.
The cost of Chinese sovereign 5-year CDS was unchanged at 65bp bid, having
tightened around 7bp last week. The Asia ex-Japan iTraxx investment-grade index
was flat at 84.5bp/85.5bp.
Indonesia's new 2027 bonds were 1bp wider today and its 30-year 1bp tighter, but
both were well inside last week's reoffer yields, at 3.83% and 4.68%,
In high yield, China Evergrande's 2025 bonds have recovered and were today
wrapped around par, but the other tranches of its recent offering were under
water. Its 2021 and 2023 bonds, both issued at par, were bid at 97.375 and
Wanda International's 2024 bonds dropped 3.5 points, after reports that Chinese
authorities had clamped down on its lenders, while they scrutinised the
company's overseas acquisitions.
S&P today put Dalian Wanda Commercial Properties' BBB- rating on review for
possible downgrade, writing that the unexpected sale of some tourism and hotel
assets last week could affect profitability.
Kyobo Life Insurance, rated A1/A+ (Moody's/Fitch), is marketing a US
dollar-denominated 30 non-call five hybrid at the 4.5% area.
Indian power producer Greenko is marketing US dollar-denominated five-year
non-call two and seven-year non-call three Green bonds.
Initial price guidance is 5.125% and 5.5% area, respectively.
Chong Hing Bank, rated Baa2/BBB (Moody's/Fitch), is marketing US dollar Basel
III-compliant 10-year non-call 5 subordinated notes at 5-year Treasuries plus
ENN Energy Holdings (Baa2/BBB/BBB) is marketing five-year US dollar notes at
Treasuries plus 170bp area.
China'sNan Hai is marketing US dollar 3-year non-call 2 Reg S bonds at initial
guidance of Treasuries plus 185bp area.
Amber Treasure Ventures is the issuer. The bonds are guaranteed by Nan
Hai and supported by a letter of credit from China Citic Bank, Shenzhen branch.
DBS Group Holdings, rated Aa2/AA- (Moody's/Fitch), has hired banks for a
potential offering of US dollar 144A/Reg S 5-year fixed and/or floating-rate
senior unsecured Green benchmark bonds off its global medium-term note
The Singapore banking group will hold global investor conference calls today and
Chinese property developer Gemdale, rated Ba2/BB (Moody's/S&P), has hired banks
for a potential US dollar Reg S senior bonds offering.
Gemdale will meet investors in Hong Kong and hold calls with Singapore investors
Incitec Pivot, rated Baa2/BBB (Moody's/S&P), has hired three banks for a
potential Reg S offering of US dollar senior unsecured bearer bonds off its
The Australian fertiliser company will meet investors in Singapore and Hong Kong
State-owned Korean telephone company KT Corp, rated A3/A-/A-, has hired BNP
Paribas, Citigroup, Credit Agricole, JP Morgan and Nomura to arrange a series of
fixed income investor meetings in Asia, Europe and the US starting Thursday.
China Jinjiang Environment Holding is planning an offering of US dollar senior
(Reporting by Daniel Stanton; Editing by Vincent Baby)
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