Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 Thenew MINMET 4.25 Perp and MINMET 4.35 Perp were largelyunchanged from RO at par this morning. We saw PBs selling Asian FRNs,but the spreads were unchanged. LNGFOR 28/QDJZWD 28/VNKRLE 29were 0.5-0.7pt higher,while BIMLVN 27/EHICAR 26 were 0.8-1.0pt lower.There were active two-way flows on USD and AAA-guaranteed LGFV issues. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk DALWAN:Consent solicitation for maturity extension of DALWAN 1102/13/26 for two years. DALWAN 26s were unchanged this morning. Seebelow. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk China Economy:Exports rebounded ahead of moderating 2026. CMBIexpects China’s goods exports may decrease from 5.2% in 2025 to 3.5% in2026while imports may rebound from-0.5%to 2%.The USD/RMBexchange rate may decrease from 7.07 at the end of 2025 to 7.02 at the endof 2026. See below for comments from CMBI economic research. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Yesterday,we saw better-selling on quasi-sovereign KR corps FRNs, whilebetter-buying on front-end FRNs across JP/AU/CN/ME financialnames. NTT30s widened 4bps. TW lifers FUBON/NSINTW widened 2-4bps even with PBbuying. See our comments on TW liferson5 Dec’25.DALWAN 26s rose1.1pts amid the launch of consent solicitation for the maturity extension ofDALWAN 11 02/13/26 for two years to Feb’28. See comments below.FAEACO 12.814 Perp edged 0.5pt higher. EHICAR 26-27 was unchanged.See comments on EHICAR’s 3Q25 resultsyesterday.In Chinese properties,VNKRLE 27-29 recovered 1.5-1.6pts. Media reported that Vanke, Shenzhengovernment and PBOC held a meeting on 7 Dec’25 with the holders ofVanke’sRMB2bn 3%onshore bond due 15 Dec’25.LNGFOR27-32/FUTLAN 28/FTNHD 26-27 were 0.1-0.4pt higher. YLLGSP was 0.1ptlower.Yanlord repurchased USD31mn YLLGSP 5 1/8 05/20/26,theoutstanding amount reduced to USD281.94mn. In SE Asia, SMCGL Perpswere 0.1-0.7pt lower. GARUDA 31s were down by 0.5pt. VEDLN 28-33swere unchanged to 0.1pt lower. On the other hand, GLPSPs were 0.1-0.3pthigher. The LGFV space experienced a firm session. Higher-yielding bonds downthe credit curve were up to 1.0pt higher across CNHand USD papers yieldingc9%with HF buying.Meanwhile,RMs and structured products teamscontinued to buy onshore AAA-guaranteed papers. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.35%), Dow (-0.45%) and Nasdaq (-0.14%) were lower onMonday. UST yield was higher onMonday. 2/5/10/30 year yield was at 3.57%/3.75%/4.17%/4.81%. Desk Analyst Comments分析员市场观点 DALWAN: Consent solicitation for maturity extensionof DALWAN 11 02/13/26 for two years Dalian Wanda Commercial Management (DWCM) launched the consent solicitation to extend the maturity ofDALWAN 11 02/13/26 (o/s USD400mn) for two years to 13 Feb’28 with mandatory partial redemptions of 12.5%each, payable on 30 Jan’26, 13 Aug’26, 13 Feb’27, and 13 Aug’27. The remaining 50% will be paid at the newmaturity on 13 Feb’28.Concurrently, DWCM seeks to lower the minimum total equity requirement for WandaHK to HKD300mn from HKD800mn, and add a par call option in whole or in part at any time. The early consentfee is 1pt andearly consent deadline is on 19 Dec'25. In case DWCM cannot secure the consent of 90% in principal amount, an extraordinary meeting will be held,and the meeting shall be quorate if two or more persons holding or representing not less than 66% of theaggregate principal amount of the bond for the time being outstanding are present, and the extraordinaryresolution shall be passed if a majority of at least 50% of the votes cast at the meeting are in favor of theextraordinary resolution. Recalled that DWCM completed consent solicitations to extend the maturity ofDALWAN 11 01/20/25 for 1 year and DALWAN 7 ¼ 12/29/24 for 11 months. DWCM repaid the amortizationsas scheduled. See Table 2 for the comparison of the current and previous consent solicitations. As per media report, DWCM intends to repay USD300mn DALWAN 11 01/12/26, to be sourced from the fundsfromthe PAG-led consortium.These funds,estimated at RMB2.4-2.5bn(cUSD339-354mn),are theoutstanding settlement for the Zhuhai Wanda Commercial Management Group acquisition and are expected tobe received within the next two weeks. As discussed before, we view the divestment of the mall portfolio to thePAG-led consortium for USD6.9bn notably strengthened DWCM’s financial flexibility and its ability toaddressoffshore maturities. We continue to view DWCM as a survivor of the sector and maintain buy on DALWANs. China Economy:Exports rebounded ahead of moderating 2026 China’s exports beat market expectation due to broad-based improvement in exports to the EU, Latin AmericaandAfrica, while exports to the US and ASEAN underperformed. Exports of integrated circuits extended itsrally thanks to the global AI booming cycle, reflecting China’s ongoing tech advancement. Ships and vehiclesremained in