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

Morning,

News Highlights

  • REDD: China EV makers on course to hit 2023 sales record on second-half rebound
  • REDD: Alibaba transfers stakes in mainland China companies amid business overhaul
  • REDD: CIFI to set up JV to develop mixed use project in China’s Shandong province
  • DW: CIFI Holdings (Group) expects to record a loss of around CNY 214.662m from disposal of stake in Dezhou project
  • DW: Country Garden delivers approximately 500,000 residential units in 11M23
  • DW: Fosun International pays HKD 14.695m for share repurchase
  • REDD: Seazen to price downsized CBICL-guaranteed bond this week

Asia Flow Credit Flow Update

  • Asia IG/Crossover –
    In China IG property space, LNGFOR weakened another 1-1.5pts with Fast Money selling across the curve and demand was limited. VNKRLE and CHJMAO closed unchanged with small PB buying. In HK space, NWDEVL tender results were released with majority of the shorter tenor bullets being tendered as expected.

China low beta IG space closed roughly 1-2bps tighter, while flows remained quiet. China TMT space closed 1-2bps tighter on the belly, while long end tightened 3-5bps. Onshore clients had two-way interests on the 5-10yr papers, while HF were chasing the long end. Japan closed roughly unchanged. There were balanced two ways flows – Taiwan accounts selling vs Chinese and PB better buying. Insurance papers saw RM trading two-way, while flows slowed down post volatile rates movement.

  • Asia HY/Non-China Credit –

In China HY property space, CSCHCN saw active two way flows with bonds moving from RM into Chinese accounts. In the afternoon, the company announced an exchange offer for the bonds and flows quietened down after. The rest of the property names like FTLNHD, SHUION and YLLGSP remained light on demand. In China Industrial space, FOSUNI closed 50-75c lower while WESCHI closed 50c lower.

Non-China continued to be slow yesterday. HY names were 25-37.5c higher post rates rally with flows skewed towards better buying mainly on renewables. Adani complex outperformed with levels 75c-1pt higher. VEDLN sec 24s was 50c higher on HF buying as HZL mulls dividend to VDL. IG names were unchanged with muted flows.

[ubslogo]

Sean Aw

UBS AG, Singapore

Credit Sales

9 Penang Road

Singapore 238459

+65 64953298

Global Sales and Trading Disclaimerhttps://www.ubs.com/global/en/investment-bank/regulatory-directory/global-sales-and-trading.html