Fixed Income Daily Market Update
CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 This morning, yesterday's new issues SHINCA Float 29 and KOHNPW 31traded 1-3bps wider, while TENCNT 36s andCNH TENCNT 36/56 werelargely unchanged. AT1s were marked down by 0.3pt. EHICAR 29 rose 0.9pt.VNKRLE 27 recovered 0.3pt, while VNKRLE 29 lost 0.8pt. FTLNHD 27 was0.3pt lower. Glenn Ko, CFA高志和(852) 3657 6235glennko@cmbi.com.hk WESCHI:Potential assetmonetization to Anhui Conch to support liquidityprofile amid Africa-related overhang. WESCHI 28-29 were unchanged thismorning. See below. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk LASUDE:Media reportedLai Sun’s proposed CCB Tower sale received allapprovals, expect to commence a roadshow next week for LME for LASUDE26 to offer an upfront payment of 30% of the principal and exchange theremaining 70% into new 3yr bond at around 8%. LASUDE 26 was unchangedthis morning. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk Trading desk comments交易台市场观点 In the new issuance space yesterday, the new SHINCA Float 29 closedaround RO at SOFR+82. The new KOHNPW 31 was unchanged from T+43amid balanced flows. TENCNT 36s/46s widened 1-3bps from RO at T+50and T+60, respectively. The new CNH TENCNT 36/56 edged 0.1-0.3pthigher from ROs at par, despite some quick profit taking from AMsduringtheday.InsecondaryIGspace,10-30yrMEITUA/KUAISH/HKTGHD/LINREI/MIZUHO and Taiwanese lifers widened 2-5bps, whilelong-end BABA/TENCNT closed c10bps wider amid heavy selling pressure.Alibaba and NIO vowed legal action after the US added the firms to “Chinesemilitary” list. WESCHI 28-29 leaked 0.4-0.5pt. See comments below. InChinese/HK properties, VNKRLE 27 lost 3.1pts, and VNKRLE 29 was 0.2ptlower. Vanke said its bondholders agreed to extend the full payment of twoonshore bonds totaled RMB4bn (cUSD590.1mm) by one year. On the otherhand,LASUDE 26 rose another 1.4pts.Media reported that Lai SunDevelopment’s proposed sale of its entire 50% stake in CCB Tower in HK toJD.comhas received all approvals,and the company plans to holdroadshows as early as next week for its planned LME for its USD493mnLASUDE 26. In SE Asian space, VLLPM 27-29 gained 1.8-4.0pts. SMCGLPerps were unchanged to 0.1pt lower. San Miguel Global Power acceptedtotal USD425.02mn of SMCGL 5.45 Perp in exchange and tender offer, andUSD258.528mn remains outstanding. VEDLN 28-33s were unchanged to0.3pt firmer. See our comments on VEDLNyesterday. European AT1sleaked by 0.1-0.3pt in a soft session amid light better selling from AMs andPBs mostly in the front end, while long-end on-the-run issues held onrelatively well. In LGFV space, we saw active two-way flows in USD issuesamong RMs and PBs. Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-1.62%), Dow (-1.87%) and Nasdaq (-1.98%) were loweron Wednesday. US May’26 CPI was+0.5% mom/+4.2% yoy, same as the market expectation. USMay’26 Core CPI was +0.2% mom, lower than themarket expectation of +0.3% mom. 5/10/30 yearUST yield were higher on Wednesday. 2/5/10/30 year yield wasat 4.13%/4.27%/4.55%/5.03%. Desk Analyst Comments分析员市场观点 WESCHI: Potential asset monetization to Anhui Conch to support liquidity profile amid Africa-relatedoverhang As permedia report, West China Cement (Weschi) is considering to use proceeds from potential onshore assetsales to Anhui Conch, for repayments of USD bonds. Anhui Conch, owns c29% stake in Weschi, had completeddue diligence on several Weschi’s projects in May’26, although pricing and structural terms have yet to befinalized. We view this as broadly consistent with Weschi’s ongoing non-core asset disposal strategy, focusingon divesting operations outside its core Shannxi market, including projects in Guizhouand Sichuan. Recalledthat Weschi sold cement projects in Xinjiang to Anhui Conch for RMB1.65bn in Aug’25. We like WESCHIs in view of their appealing risk-return profiles, the company’s good execution of overseasexpansion strategy, considerably relievedrefinancing risk following the “friendly” LMEs in Dec’25 and Feb’26and subsequently early redemption of WESCHI 4.95 07/08/26in full on 6 Mar’26. That said, the recentperformance of WESCHIs has been weighed by concerns over weaker operating conditions in its Africanmarkets amid the Ebola outbreak and ongoing instability in the Democratic Republic of the Congo. Prolongeddisruption could pressure volumes and margins in the region.While we continue to monitor developments inAfrica, we see potential near-term upside catalysts from the execution of asset disposals to Anhui Conch, whichshould strengthen Weschi’s liquidity position and support the bond performance. News and market color Regardingonshore primary issuances, there were 121 credit bonds issued yesterday with an amount ofRMB125bn. As for month-to-date, 749 credit bonds were issued with a total amount of RMB832bn raised,representing a 54.7% yoy increase [HYUELE]SK Hynix aims for US listing as soon as Aug’26 [QBEAU]QBE Insurance priced EUR5