January 4, 2017 / 9:30 AM / a year ago

ASIA CREDIT CLOSE: Credit firmer; Aoyuan in focus

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

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