Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The new ANZNZ 29-31s tightened 3-5bps from ROs this morning. MEITUAcurve tightened 3-5bps. JP AT1s and insurance subs edged 0.1-0.3pt higher,led by NOMURA 7 Perp. GLPSP 4.6 Perp/CKINF 4 Perp were 0.3-0.4pthigher. VLLPM 29/EHICAR 26 were down by 0.5-0.9pt. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk KUAISH:FV of the new KUAISH 31s to be T+50bps and the new KUAISH36s to be T+65bps. See below. Cyrena Ng, CPA吳蒨瑩(852) 39000801cyrenang@cmbi.com.hk China Economy:Rebalancing remains challenging. CMBI expects growthof exports of goods to slow from 5.5% in 2025 to 3.5% in 2026 while growthof imports of goods to rebound from 0% in 2025 to 2%. See comments fromCMBI economic research below. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 Yesterday,MEITUA curve tightened 3-5bps.Chinese IG beta namesFRESHK/ZHOSHK tightened 2-4bps with flows among PB and AM accounts.In HK, LASUDE 26/FAEACO 12.814 Perp gained 0.3pt. HYSANs wereunchanged to 0.3pt higher. NWDEVL/VDNWDL complex were 0.4pt lower to0.2pt higher. CASHLD Perps/MTRC Perps were up by 0.1pt. In Chineseproperties, VNKRLE 27-29 recovered 1.2pts. GRNLGR rose 1.1pts. FTLNHD27 was up by 0.2pt. In KR space, recent new issues SKBTAM/HYNMTR aswell as older HYUELE/LGENSO curves tightened 2-3bps, driven by robustreal-money deployment demand from Chinese onshore accounts.POHANG/PKX28-35s also tightened 1-4bps,after the new issues ofPOHANG 31s/36s. In JP space, 5yr financial FRNs were 1-3bps tighter, whilerecent fixed-ratetranches of MUFG 32-37s tightened 5bps, benefited fromforeign account topping. JP AT1s and insurance subs had an active session;NOMURA 7 Perp and RESLIF 6.875 Perp gained 0.2pt. European AT1s werea touch weaker amid better selling from London, as offers moved lower by0.1-0.3pt. In SE Asia space, VLLPM 27-29 dropped 0.2-1.5pts. On the otherhand,VEDLN 28-33s remained strong and rose 0.2-0.5pt.GLPSPPerps/IHFLIN 27-30s increased by 0.1-0.2pt. In the Middle East, the recentEBIUHand FABUH 31s held steady and closed unchanged,whileEBIUH/FABUH FRNs remained well bid by PBs. KFHKK 31s gained 0.1pt.The recent KSA 31s closed unchanged amid some selling pressure fromChinese accounts, while KSA 36s edged 0.2pt higher. The LGFV spaceremained largely afloatthanks to demand from RM investors. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.53%), Dow (-0.09%) and Nasdaq (-1.00%) wereloweron Wednesday. US Nov’25 PPI was+0.2% mom, same as market expectation. US Nov’25 retail sales and core retails sales was +0.6%/+0.5%,respectively, higher than the market expectation of +0.5%/+0.4%. UST yield was lower on Wednesday. 2/5/10/30year yield was at 3.51%/3.72%/4.15%/4.79%. Desk Analyst Comments分析员市场观点 KUAISH:FV of the new KUAISH 31s to be T+50bps and the new KUAISH 36s to be T+65bps Kuaishou Technology (1024.HK, Kuaishou) purposes to issue 5yr-and 10yr-Reg S/144A USD seniorunsecured bonds (A3/A-/A-). We view the FV of the new KUAISH 31s to be T+50bps vs IPT at T+85bps, whilethe new KUAISH 36s to be T+65bps vs IPT at T+100bps. Our FV estimation is based on the valuation of itsChinese TMT peers and adjusted for a debut issuer premium. See Table 1. Net proceeds will be used forgeneral working capital. Meanwhile, Kuaishou proposes to issue 5yr dim sum bond with IPT at 2.95%. Kuaishou was found in 2011 and listed in Hong Kong in 2021. It is China’s 2nd largestshort video platform and3rd largest app in China by total time spent. In 9M25, average MAUs were 719mn and DAUs were 411mn, withmore than 1.3bn monthly short video uploads. Kuaishou generated revenue of RMB103bn in 9M25, up 12.8%yoy, comprised of 56% from online marketing, 29% from live streaming and 15% from other services.Adj.EBITDA in 9M25 was RMB22bn, 21.1% yoy increase, with an adj. EBITDA margin of 21.1%. In 9M25, Kuaishou generated operating cash flow of RMB20bn which was sufficient to coverits capex ofRMB12bn. As of Sep’25, Kuaishou had total cash and cash equivalent and short-term investment of RMB59bnand total debt of RMB23bn, implying a net cash position of RMB36bn. The total debt/adj. EBITDA was 0.8x asof Sep’25. China Economy: Rebalancing remains challenging China’sexports of goods in 2025 demonstrated resilience amid global challenges, with the 5.5% growthexceeding our forecasts, driven by enhanced ties with non-US economies and supply chain rerouting throughintermediaries. Manufacturing sector expanded through innovation and upgrading, with a significant rise of high-tech exports like integrated circuits, motor vehicles and medical equipment, while traditional sectors likegarments and toys declined. Imports stagnated at zero growth, widening the trade surplus toa recordUS$1.19trn (estimated 6.1% of GDP), constrained by weak demand and overcapacity pressure in the domesticmarket. China’s GDP growth slowed post-3Q25, dipping below 5% for at least two quarters, with furtherdece