Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, CKHHs were unchanged post Panama took control of twoports on the Panama Canal from CK Hutchison yesterday.We see limitedimpact to CK Hutchison’s cash flow and asset base.Long-end Chinese IGKUAISH/XIAOMI/BABA widened 3-5bps. Long-end JP insurance bondswere unchanged to 0.1pt higher. NWDEVL 6.25 Perp was 0.4pt higher. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk Chinese properties:Jan’26 contracted sales dropped 20.2% yoy. Seebelow. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk MONGOL:Tender offer for ‘26s at par, ‘28s at 107.5 and ‘29s at 107.75funded by new 6-yr USD bonds issue. All the ’26s tendered will be accepted,while the maximum acceptance amt for ’28s and ‘29s will be capped at thenet proceeds from new issuance minus the total o/s amount and interest ofthe ‘26s. Offer expires on 27 Feb’26 5pm EST. MONGOLs were unchangedthis morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点  Yesterdaywas another slow session amid onshore CNY and Japan holiday.Spreads remained largely unchanged to a touch wider across Asian IGcredits. In the FRN space, we saw active two-way flows across Chinese,Korean, Australian and Japanese names.In Greater China higher-yieldingspace,EHICAR 26 edged 1.0pt higher,while EHICAR 27 lost 0.2pt.NWDEVL 4.8 Perp was 6.5pts lower, while the rest of NWDEVL/VDNWDLcomplex closed 0.2pt lower to 0.6pt higher. LASUDE 26/FAEACO 12.814Perp were down by 0.3-0.4pt. In Chinese properties, VNKRLE 27’ and 29’retraced 0.5-0.6pt. FUTLAN 28/FTLNHD 26-27 were unchanged to 0.1pthigher. In SE Asian space, ACPM 4.85 Perp and ACPM 5.125 Perp leaked0.7-1.0pt. Ayala’s property arm expected its commercial segment to drivegrowth this year, compensating for softness in the residential business.VEDLN 28-33s were up to 0.3pt lower. Media reported that VRL has raisedUSD350mn in fresh borrowing from several global banks which will be usedto refinance upcoming interest payouts and maturities. ADSEZ 27-41s wereunchanged to 0.1pt higher.We saw mixed two-way flows in Thai namesPTTGC/TOPTB Perps, which closed unchanged. MEDCIJ 26-30 were 0.2ptlower to 0.1pt higher. VLLPM 27-29 leaked 0.5-0.6pt. In JP space, RAKUTN27-29 and RAKUTN Perps edged 0.1pt higher. See our commentsyesterday.Japanese AT1s and insurance subs climbed 0.1-0.4pt on back of RM buyingflows, despite the absence of onshore Japanese accounts. As for YankeeAT1s, we saw a round of RM buying on the callable 29-30 papers into theLondonsession.In the Middle East,30yr long-end tranches ofKSA/ARAMCO closed 0.2-0.3pt higher. FABUH 34-35/SECO 29-36 wereunchanged to 0.1pt higher. The LGFV space was largely muted. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-1.04%), Dow (-1.66%) and Nasdaq (-1.13%) were lower on Monday. UST yield was lower onMonday. 2/5/10/30 year yield was at 3.43%/3.59%/4.03%/4.70%. Desk Analyst Comments分析员市场观点 Chinese properties:Jan’26 contracted sales dropped 20.2% yoy Contracted sales momentum stayed soft in Jan’26,31 developers under our radar reported contracted salestotaled RMB88.6bn, decreased 20.2% yoy from RMB111.1bn in Jan’25. Only 3 of 31 developers reported yoyincrease in contracted sales, down from 5 developers in Dec’25, reflecting thestill-weakdemandbackdrop. CHIOLI, CHJMAO and CRHZCH were among the top performers, posted contracted sales growth of 38%, 19%and 2% yoy to RMB14.5bn, RMB7.6bn and RMB11.7bn, respectively. The bottom performers were JINGRU(RMB20mn), REDSUN/HONGSL (RMB100mn) and FUTLAN/FTLNHD (RMB714mn), with contracted salesdown 90%, 90%, and 81% yoy, respectively. Today, the PBOC kept the 1yr and 5yr LPR unchanged at 3.0% and 3.5%, respectively. These rates have beenunchanged for nine months following the 10bps cuts in May’25 from 3.1% and 3.6%. CMBI economic researchexpects a 10bp cut in LPR in 1Q26, followed by an additional 10bp LPR cut in 3Q26, which should providesome support to the weak housing market, in ourview. Recalled that theMoF introduced policies in Jan’26 aimed at boosting domestic demand and privateinvestments, consistent with the policy tone set at the Central Economic Work Conference. While we expect anew round of demand-driven stimulus on property market could emerge in 1Q26, the path to a sustainedrecovery remains to be long in view of the weak homebuyers’ confidence, which in turn, hinges on householdincome expectation and the home price trend. According to the China Index Academy, new home prices rose0.18% mom in Jan’26, compared to 0.28% mom increase in Dec’25. Offshore Asia New Issues (Priced) Offshore Asia New Issues (Pipeline) News and market color Regardingonshore primary issuances, no credit bond was issued yesterday due to CNY holiday. As formonth-to-date, 922 credit bonds were issued with a total amount of RMB713bn raised, representing a9.2% yoy decrease Macauhad c1.6mn visitors in the 9 days of CNY holiday season