February 26, 2018 / 8:59 AM / 6 months ago

ASIA CREDIT CLOSE: Credit active as China supply builds up

HONG KONG, Feb 26 (IFR) - Asian credit markets were active on Monday as Chinese names began churning out bond offerings after the Lunar New Year Holidays.

There were six new Chinese issues on Monday across currencies, and market participants expect the supply momentum to continue into March.

“There were so many deals to look at today that I didn’t even have time for lunch,” said a Hong Kong-based investor.

The iTraxx Asia ex-Japan investment-grade index was 2.6bp tighter at 67.6bp/68.3bp.

China’s five-year CDS were 2bp tighter at 55.68bp/56.68bp, following the news that the ruling Communist Party set the stage on Sunday for Xi Jinping to stay in office indefinitely, with a proposal to remove a constitutional clause limiting presidential service to just two terms in office.

Geely’s 3.625% 2023s were bid at a cash price of 98.23, off last Friday’s closing of 98.25 on the news that Geely bought 9.7% stake of Daimler for US$9bn.

China National Chemical Corp’s 3.50% 2022s were bid 2bp wider at 154bp over US Treasuries.

Sino-Ocean Group’s 4.90% perpetual non-call five securities, issued in September 2017, were bid at a cash price of 95.75, off Friday’s closing of 96.281, according to Tradeweb.

The Chinese developer said on Sunday Anbang Insurance Group had no plans to trim its stake in the company, and that the Chinese government’s takeover of the insurer would not impact its business.

Reporting by Ina Zhou; Editing by Dharsan Singh

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