Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 The Asset G3 Bond Benchmark Review 2026 Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk We hope you found our commentaries and ideas helpful. Weseek to elevate ourefforts and value-add further in the coming year. We highly appreciate yoursupport to us in Sell-Side Analysts of the polls of “The AssetG3 Bond BenchmarkReview 2026”.Thankyou for your support! Asia IG credits were largely unchanged this morning, amid AMs selling front-end Korean issues/HK T2s while Chinese accounts buying 5yr AMCs.SOFTBK 65 was up 0.5pt. YPCORP 29 lost 0.6pt. EHICAR 29 was 0.5ptlower. Long-end CNH issues edged 0.3pt higher amid better buying fromAMs. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk SHUION:Continues to leverage on its IP portfolio to enhance financialflexibility. SHUION 29 was unchanged this morning. See below. DAIL/NIPLIF:Moody’s upgraded IFSR rating of Nippon Life and Daiichi Lifeby onenotch to Aa3 from A1 under the updated rating methodology whichchangedthe criteria for rating entities above the sovereign rating.DAILs/NIPLIFs were unchanged this morning amid slightly better buying. Trading desk comments交易台市场观点 Last Friday,the new STANLN 7 Perp edged 0.6pt higher from RO at par,amid better buying from RMs and PBs. The Macau gaming complexes wereunchanged to 0.3pt higher. In HK, the NWDEVL/VDNWDL complex gainedup to 0.7pt. FAEACO 12.814 Perp closed 0.5pt higher. Far East Consortiumcompleted thedisposal of 50% stake in Ritz Carlton Perth. Chinese TMTsMEITUA/XIAOMI traded 2bps tighter to 3bps wider. See our comments onXiaomi 1Q26 resultslast Friday.WESCHI 28-29 edged 0.1-0.4pt higher. InChinese properties, VNKRLE 27’ and 29’ were 0.5-0.7pt higher, whileLNGFOR 28-32 gained 0.2-0.5pt. Vanke units have received approval frombanks to extend RMB1.184bn (cUSD175mn) loans in total. In SE Asianspace, GARUDA 31 led the space and rose 2.1pts. VEDLN 28-33s closedupto 0.3pt higher.See our comments on Vedanta on 28 May’26.TOPTB/PTTGC Perps traded 0.2-0.3pt higher. GLPSPs/GLPCHI were 0.3ptlower to 0.1pt higher. GLP Pte plans to sell non-China data center assetswith a net asset value of around USD1bn to a fund managed by AresManagement this year.In JP space, insurance subs NIPLIF/DAILclimbedby 0.5pt on the back of Moody's upgrades, and RESLIF/SUMILF edged 0.1-0.3pt firmer amid better buying demand from prop desks and PBs. SOFTBKsgained 0.1-0.6pt. SoftBank will invest up to USD87.5bn to develop 5GW datacenter in France. The LGFV space was overall stable amid two-way flowsamong RMs and tactical investors. We saw some sporadic selling in higher-yielding USD issues but they were largely well digested. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.22%), Dow (+0.72%) and Nasdaq (+0.20%) were higher on last Friday. US May’26 ChicagoPMI was 62.7, higher than the market expectation of 50.6. 2/5 yearUST yield were lower on last Friday. 2/5/10/30year yield was at 3.98%/4.13%/4.45%/4.99%. Desk Analyst Comments分析员市场观点 SHUION:Continues toleverageonits IPportfolio to enhance financial flexibility Shui On Land (SOL) filed an application with Shanghai Stock Exchange to issue RMB5.8bn (cUSD845mn) inABS, backed by its Wuhan Xintiandi project.We view this as an another demonstration of SOL’s ability tomonetize its IPs portfolio to enhance its financial flexibility. In Jan’26, SOL issued USD450mn SHUION 29 tofund a concurrent tender offer for SHUION 26, accepting USD295.218mn of the USD400mn outstanding andleaving USD104.782mn remaining.The LME effectively extended SOL’s maturity profile and alleviated near-term refinancing pressure. Despite persistent sector headwinds, SOL remains one of the few Chinese propertydevelopers that continues to honor offshore obligations, underpinned by onshore funding access and ongoingasset disposals. We are neutral on SHUION 29 on valuation. In Chinese properties space, we like CHJMAO,FUTLAN/FTLNHD, GRNCH, and LNGFOR. Offshore Asia New Issues (Pipeline) News and market color Regardingonshoreprimary issuances, there were 74 credit bonds issued last Friday with an amount ofRMB48bn. As for May’26, 1,407 credit bonds were issued with a total amount of RMB1,550bn raised,representing a 4.8% yoy decrease Chinaallows local government special-purpose bonds to support urban renewal projects [DAIL]Moody’s upgraded IFSR rating of Daiichi Life by one notch to Aa3 from A1 and upgraded itssubordinated debt rating to A2 from A3 [FAEACO]Far East Consortium completeddisposal of 50% stake in Ritz Carlton Perth [LENOVO]Lenovo to build R&D, manufacturing base for AI computing products in Tianjin [MITMOT/NSANY]Nissan, Mitsubishi to jointly produce vehicles in North America and Japan [NIPLIF]Moody’s upgraded IFSR rating of Nippon Life by one notch to Aa3 from A1, its senior unsecureddebt ratings to A1 from A2, and its subordinated debt ratings to A2 from A