Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 Asian IG credits were largely unchanged this morning. The marketwascautious ahead of abundant new issue pipelines in JP/KR space. We sawbetter selling in AT1s and LGFV, yet the prices remained range-bound.GLPSP 4.6 Perp lost 0.5pt, while GLPSP 7.865 Perp gained 0.3pt. WESCHI28 recovered 0.5pt. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Jerry Wang王世超(852) 3761 8919jerrywang@cmbi.com.hk HONGQI:1H26 positive profit alert on stronger aluminum alloy ASPs.Maintain neutral on HONGQIs, which were unchanged this morning. Seebelow. Yujing Zhang张钰婧(852)3900 0830zhangyujing@cmbi.com.hk MEITUA/XIAOMI:Media reported Meituan has axed nearly 2,000 jobs overthe past two months as it seeks to recover from aprice war in China, whileXiaomi has been cutting jobs across its businesses over the past few monthsamid rising component costs and softer EV demand. MEITUAs/XIAOMIswere unchanged this morning. Trading desk comments交易台市场观点 Last Friday,HYUELEs were squeezed 2bps tighter across thecurve. SKHynix’s USD26.5bn US listing marks the largest-ever debut by a foreigncompany in the US capital markets. See our commentslast Friday. The restof KR credits were 1-2bps tighter on steady deployment into POSCO/HYNMTR/DAESEC.In Chinese IG space,TENCNT/KUAISH/MEITUAtightened 1bp amid two-way flows. Media reported China plans to permit topAI firms, including Alibaba, to purchase a limited number of H200 chips fromNvidia. TW lifers traded 1-2bps tighter amid thin, lackluster volumes. In JPspace,the recent new issues SUMIBK/MIZUHO/NTT tightened 1-2bps,driven by active buying from institutions. In higher-yielding space, WESCHI 28-29 lost 0.8pt. LASUDE 26 leaked 0.1pt.LaiSun Development secured consent for amendments and acceptedUSD477.0mn LASUDE 5 07/28/26for exchange. The NWDEVL/VDNWDLcomplex edged 0.1-0.4pt higher. VNKRLE 27-29/LNGFOR 27-32 gained 0.1-0.4pt.In SE Asian space, PTTGC/TOPTB Perps traded 0.1pt higher. Seeour comments on PTTGC on9 Jul’26. VEDLN 28-33s closed unchanged to0.3pt higher. Vedanta Resources will fully redeem USD300mn VEDLN 10 ¼06/03/28 at 102.563 plus interest and USD1.2bn VEDLN 10 ⅞ 09/17/29 atpar plus interest and applicable premium on 17 Jul’26.European AT1soverall recovered by 0.1-0.2pt.LGFVs were stable to atouch firmer amidactive two-way flows, especially in on-the-run CNH issues. Other CNH bondsedged another 0.3pt higher, driven by AM buying across the curve. CMBI Fixed Incomefis@cmbi.com.hk Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (+0.42%), Dow (+0.29%) and Nasdaq (+0.29%) were higher on last Friday.UST yield were higheron last Friday. 2/5/10/30 year yield was at 4.21%/4.30%/4.56%/5.06%. Desk Analyst Comments分析员市场观点 HONGQI:1H26 positive profit alert on stronger aluminum alloy ASPs China Hongqiao (HONGQI) issued a positive profit alert, guiding for c39% yoy growth in net profit tocRMB18.8bn in 1H26 from RMB13.6bn in 1H25, mainly driven by higher sales prices for aluminum alloyproducts. The positive alert is consistent with the solid 1Q26 results of Hongqiao Holdings (002379.CH),HONGQI’s key subsidiary (c89% stake), where earnings were supported by higher ASPs (Shanghai aluminumprice up c17% to cRMB24k/t in 1Q26) and softer input costs (such as bauxite). We also see HONGQI’s ongoingnet debt reduction and improving liquidity profile as supportive of its credit profile, underpinning its resilienceamid a still-constructive aluminum price backdrop under tight global supply conditions. We maintain neutral on HONGQIs, as we view currentvaluations have largely priced in the favorable aluminumprice environment. Within Chinese HY corporates, we prefer CWAHK 5.875 10/22/30, which in our view offersa more attractive risk-return profile than HONGQIs and other Chinese HY peers. Offshore Asia New Issues (Priced) News and market color Regardingonshoreprimary issuances, there were 64 credit bonds issued last Friday with an amount ofRMB51bn. As for month-to-date, 643 credit bonds were issued with a total amount of RMB663bn raised,representing a 15.1% yoy decrease Macauis looking to boost its tally of overseas visitors by attracting people arriving by air to theneighboring Chinese-mainland cities of Guangzhou or Shenzhen [CHJMAO]China Jinmao unit to lend up to RMB2.8bn to shareholders under three-year frameworkagreement [CNPCCH]Moody's upgraded CNPC Finance HK by one notch to A1 from A2, reflects the increasinglysupportive government policies for Chinese SOEs centralized treasury management, liquidity monitoringand offshore fund control, which reinforce CPF HK's essentiality and integration within China NationalPetroleum Corporation's (CNPC, A1 stable) group-wide governance and financial management; outlookstable [HYUELE]SK Hynix expects the most acute memory chip supply shortage next year, with customerdemandcontinuing to outstrip its production capacity beyond 2030 [LASUDE]Lai Sun Development secure