This is Sales & Trading Commentary and not research, views expressed may differ from UBS Research

Morning,

News Highlights

  • REDD: Redsun delays dispatch of circular on disposal of project company stake
  • REDD: ENN Energy to repurchase USD 200m of 2.625% notes due 2030
  • DW: China Vanke downgraded two notches to Baa3 on weakening contracted sales; outlook negative – Moody’s
  • DW: Studio City Finance upsizes tender offer for 6% senior notes due 2025 to USD 100m
  • DW: China Evergrande: Hengda Real Estate’s additional around CNY 1.912bn of assets subject to enforcement
  • DW: China Jinmao to make CNY 1.882bn capital contribution to Xinmao Real Estate for development of Suzhou residential land parcel
  • DW: CIFI receives warning from CSRC // for failing to disclose FY22 results by the required deadline
  • DW: Hopson Development repurchases, cancels USD 13m of 6.8% guaranteed senior notes due 2023
  • REDD: China Hongqiao to lower conversion price of USD 300m 5.25% notes on dividend payment

Asia Flow Credit Flow Update

  • Asia IG/Crossover –

China IG property space closed the week with some profit taking selling from FM on names like LNGFOR that had a strong rally. Over the weekend, there was more positive news with CCB holding a meeting with 6 developers, which includes LNGFOR and FTLNHD. This should provide the space more support to start the week. In HK space, LIFUNG curve saw active two way flows with better buying from PBs. In the FFL space, HYAN outperformed with both 4.85 and 4.1 PERPs better bid.

China TMT remained strong with onshore accounts better buying, spreads closed unchanged to 2bps tighter. HK benchmark properties tightened 5-7bps with HKLSP outperforming. Flow-wise, we saw HF better buying and street lifting.

  • Asia HY/Non-China Credit –
    In HY property space, quality property names closed the week strong with FTLNHD front end as the outperformer, closing 3pts higher on the 4.8 24s. The other names like SHUION and YLLGSP were also skewed to better buying. In the Distressed space, there was some lifts on COGARD and SINOCE curves in casual sizes. In China Industrial space, bonds closed unchanged last Friday.

Non-China space was relatively muted with levels unchanged to 25c lower with some RM profit taking selling.

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Sean Aw

UBS AG, Singapore

Credit Sales

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Singapore 238459

+65 64953298

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