November 8, 2017 / 8:24 AM / a year ago

ASIA CREDIT CLOSE: Credit weaker; Yunnan Energy outperforms

HONG KONG, Nov 8 (IFR) - Asian credit markets were weaker on Wednesday as the Chinese investment-grade sector widened on increased supply.

The stock markets in China put on mixed performances after data showed that growth in the country’s exports slowed in October on a cooling of the economy. The Shanghai Composite Index closed up 0.1%.

Traders noted there was some selling pressure on China IG bonds with mainland asset-management companies 2bp-3bp wider.

“Investors have become pickier about Chinese names on a pickup in supply,” said a Hong Kong-based credit analyst.

The iTraxx Asia ex-Japan IG index was 4bp wider at 78bp/79bp.

New issues were active. Yunnan Provincial Energy Investment Group’s new 2020s and 2022s outperformed, with the notes seen 8bp and 17bp tighter, respectively.

KWG Property Holding’s new seven-year non-call four notes were at reoffer price.

China Huarong AMC’s new 2027s traded below water, being bid at 197bp over US Treasuries.

Reporting by Ina Zhou; Editing by Dharsan Singh

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