HONG KONG, Jan 4 (IFR) - Asia credit markets were firmer on
Wednesday with a new U.S. dollar bond offering from China Aoyuan
Property Group getting the most attention.
"Investment-grade credits were in general a bit tighter
today as investors started building positions into the new
year," said a Hong Kong-based credit trader with a Chinese bank.
The Asia ex-Japan iTraxx investment-grade index tightened
2bp to 116bp/118bp.
Chinese property developers extended their dominance in
primary markets from late December with Aoyuan marketing a new
issue of up to US$250m.
"The high-yield sector grew more active this week and recent
new issues by Chinese developers were slightly firmer today,"
said another credit analyst based in Hong Kong, "Chinese
property names have big demand for refinancing their US dollar
bonds callable in 2017."
The analyst noted that China Evergrande's 2019s were little
changed on Wednesday after rallying by one point yesterday
following an announcement that Evergrande would sell shares in a
property subsidiary to eight investors for a total Rmb30bn, as
part of its Shenzhen backdoor listing plan.
(Reporting by Ina Zhou; Editing by Vincent Baby)