August 24, 2017 / 7:48 AM / a year ago

ASIA CREDIT CLOSE: Credit active with focus on China Great Wall

HONG KONG, Aug 24 (IFR) - Asian credit markets were active on Thursday as Hong Kong reopened after Typhoon Hato, the biggest storm in five years, swept through the city on Wednesday.

Regional equities markets largely shook off the risk aversion that gripped financial markets overnight after President Donald Trump’s threat to shut the US government. Hong Kong’s Hang Seng Index was up 0.52% at the time of this writing.

In the credit markets, investors focused on new offerings from China Great Wall Asset Management. The order book had hit over US$7bn for the three-tranche offering before noon.

“Given the expected strong support from relationship banks and the relative scarcity of its bond offerings, it would not be surprising that China Great Wall could draw good demand,” said a Hong Kong-based credit trader.

He noted, however, that there was selling pressure on the US dollar notes of China Huarong, another mainland AMC. “It cannot be ruled out that some investors were offloading Huarong’s notes for cash in order to subscribe to China Great Wall.”

The iTraxx Asia IG index tightened marginally to 80/81. Huarong’s 3.375% 2020s were slightly weaker. The notes were bid at 100.889 in cash price.

Chinese developer Guangzhou R&F Properties’ 5.75% 2022s were bid at 101.375 in cash prices, down 20 cents from Monday.

Yet, its Hong Kong-listed shares rose as much as 10% today to their highest since July 2009 after the company reported strong earnings for the first half.

Shui On Land’s 4.375%2019s were firmer, being quoted at 100.63 in cash price. The developer saw revenue surge 185% to Rmb10.2bn for the first six months of this year.

Reporting by Ina Zhou; Editing by Dharsan Singh

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