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

Morning,

News Highlights

  • DW: China Evergrande says report claiming company never been profitable is without basis
  • REDD: Swire Properties says easing of Indonesia curbs to boost sales of Jakarta project
  • REDD: China new home prices tick up in November for third straight monthly gain
  • DW: Road King Infrastructure to consider sale of Road King (China) Infrastructure at 20 December SGM
  • DW: China SCE Group unit SCE Intelligent Commercial Management to consider acquisition of shopping mall complex in Beijing at 21 December EGM
  • REDD: Seazen Group ratings downgraded to B2 by Moody’s
  • REDD: Adani plans to raise USD 350m to prepay restricted group-1 bond due December 2024

Asia Flow Credit Flow Update

  • Asia IG/Crossover –
    China IG/Crossover space saw relatively light flows as investors have started to wind down for the year. In China property space, high dollar priced names like LNGFOR and CHJMAO closed the week 4-7pts lower vs the week before. VNKRLE was unchanged. In HK space, NWDEVL curve stabilized and was muted last Friday which was the tender deadline. In China POE space, GLP curve closed 50c-1pt lower.

China TMT space was unchanged to 1-2bps tighter to end the week with the rates sell off. We saw global RM trading two-way on A rated names such as BABA/TENCNT/TME. However, we don’t see much onshore Chinese clients stepping in. Japan IG space closed unchanged to a touch tighter. Insurance papers saw RM trading two way, while PB were skewed to better buying.

  • Asia HY/Non-China Credit –
    In HY property space, beta names like FTLNHD closed the week 5-7pts lower. In the distressed space, we saw active two way flows on SUNAC and PWRLNG. SINOCE curve was also skewed to better buying across the bullet papers and block traded on the PERPs.

Non-China space was 25-50c higher with RM accounts better buying. GARUDA launched a tender offer for 2031 notes, while most clients were still standing sidelined digesting the news. Renewables names were marked up 25-50.

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Sean Aw

UBS AG, Singapore

Credit Sales

9 Penang Road

Singapore 238459

+65 64953298

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