HONG KONG, Feb 8 (IFR) - Asian credit markets were little
changed on Wednesday, however, Chinese property developers
rallied on hopes that their earnings might beat analyst
Traders and analysts said that investors snapped up stocks
and bonds of Chinese property developers today after sales
reports for January came stronger than expected.
"The market was very bearish about the sector before the
Lunar New Year with concerns about policy tightening," said a
Hong Kong-based credit analyst.
"However, the better-than-expected January sales have made
the market realise that the Chinese developers might have been
undervalued and might lead to revisions in earning estimates for
The top three Chinese developers, China Vanke, Country
Garden and Evergrande all reported strong sales growth and
accounted for more than 30% of the sales among the top 100,
according to a report by Lucror Analytics.
Country Garden's H-shares jumped over 8%, while its US
dollar 2020 bonds gained a quarter of a point, according to the
The iTraxx Asia ex-Japan investment-grade index was spotted
0.4bp wider at 108/109.5. New issues by Chinese banks were
mixed, with Shanghai Pudong Development Bank's new 2020s weaker
and Bank of China's new 2020s slightly firmer.
(Reporting by Ina Zhou; Editing by Vincent Baby)