Fixed Income Daily Market Update

CMBI Credit Commentary Fixed Income Daily Market Update固定收益部市场日报 •This morning, the new ICICI 31s tightened 5bps from RO at T+105. Asia IGspreads widened 1-3bps, with better selling in 2-3yr China/Korea names. Wealso saw selling in long-end AT1s amid the macro backdrop and were 0.4-1.0pt lower. CNH LGFVs remained well supported on better buying flows.GLPSP 4.6Perp was 0.4pt higher. WESCHI 28 down 0.6pt. Cyrena Ng, CPA吳蒨瑩(852) 3900 0801cyrenang@cmbi.com.hk Jerry Wang王世超(852) 3761 8919jerrywang@cmbi.com.hk •SANLTD:GGR market share increased to c24.8% in 1H26. Maintain neutralon SANLTDs, which were unchanged this morning. See below. •China Economy:Policy support to remain moderate albeit with broadslowdown. CMBI maintains 2026 GDP growth forecast at 4.6%, with growthmoderating from 4.7% in 1H26 to around 4.6% in 2H26. See comments fromCMBI economic research below. Tradingdesk comments交易台市场观点 Yesterday, Asia IG spreads closed unchanged to 2bps wider in a quietsession. Flows were mixed across regions. ICICIs widened 2-3bps followinga new 5-year benchmark announcement. ICICI Bank priced USD750mnsenior unsecured bonds at T+105, tightened from IPT at T+130. In the restof SE Asia, BBLTB 34s/36s widened 2-3bps on Chinese AM selling. Chinesenames facing selling in BABA/KUAISH/FRESHK, although TENCNT 36sbucked the trend and tightened 1bp. In Taiwan lifers, we saw better buyingin SHIKON with the rest of the space was unchanged. Korea names tradedin light flows and closed unchanged. Japan space was muted, with FRNsflats and persistent selling concentrated in the belly of SMBCAC. In higher-yielding space, Japanese and European AT1s were 0.2pt lowerversus last Friday’s Asia close as rates moved higher again. Flows wereoverall light with balanced two-way out of Asia, mainly from PB and propaccounts, while small better selling from London. CN/HK names EHICAR26/WESCHI 29 rose 2.2-2.8pts. EHICAR 27 was 0.6pt lower, EHICAR29/WESCHI 28 were unchanged. REGH 6.5 Perp up 0.5pt.In LGFVs, wesaw stable two-way flows. CNH papers remained supported by RM/HFdemand across the curve, from 3%-yielding bonds through to the very longend. USD LGFVs were mixed,IG names struggled to find buyers at low-5%yields, or c+100bps over CT2, while high-yielding issues remained supported.In non-LGFV CNH, we continued to see RM demand in 10-30yr papersacross TMT/SOE/non-Chinese names. CMBI Fixed Incomefis@cmbi.com.hk ❖Last Trading Day’s Top Movers Marco News Recap宏观新闻回顾 Macro–S&P (-0.52%), Dow (-0.51%) and Nasdaq (-0.32%) were lower on Monday.UST yield washigheronMonday. 2/5/10/30 year yield was at 4.19%/4.38%/4.72%/5.31%. Desk Analyst Comments分析员市场观点 SANLTD: GGR market share increased to c24.8% in 1H26 Sands China (SANLTD) reported 12.0% yoy growth in casino revenue to USD2.9bn in 1H26 from USD2.6bn in1H25,outperformed Macau GGR growth of 6.8% yoy. We estimated that its GGR market share increased toc24.8% in 1H26, from c23.4% in FY25. SANLTD’s improved casino revenue was mainly driven by higher tablegames and slot volumes, partially offset by lower table games win rates and slot hold %. Total revenue rose11.1% yoy to USD3.9bn in 1H26 from USD3.5bn in 1H25. However, its adj. property EBITDA declined 3.5%yoy to USD1.1bn, mainly due tohighermarketing expense and payroll. In our view, the margin pressure facingSANLTD, and also other Macau gaming operators, may persist in the near term amid a competitive Macauoperating environment. Finance cost dropped 12.8% yoy to USD170mn from USD195mn in 1H25, following areduction in weighted-average borrowing cost to4.5% from 4.7% in 1H25. The lower funding cost reflected theretirement of higher-cost debt during the period. As of Jun’26, SANLTD had USD851mn cash on hand, down from USD1.5bn as of Dec’25, mainly due to therepayment of credit facility of USD637mn and dividend payment of USD517mn which partly offset the operatingcash flow of USD905mn. Net debt was broadly stable at USD5.6bn. The next USD bond maturity is USD700mnSANLTD 2.3 03/08/27 in Mar’27. We consider refinancing risk as limited, supported by available undrawn creditfacility of USD2.3bn, smooth access to funding channels, and resilient operating performance. We understandthat SANLTD used a combination ofrevolving facility drawdown of cUSD797mn and cash on hand to repay theUSD800mnSANLTD 3.801/08/26 atmaturity. Overall, we view SANLTD’s credit profile as stable. We still like Macau gaming bonds as relatively lower-betaand good carry plays with improving credit stories. That said, we expect further USD issuance across the sectorgiven scheduled maturities and manageable funding costs, From a valuation perspective, we view SANLTDsappear less attractive than its peers. Our top picks in the sector are MPELs, STCITYs, and SJMHOL 31, giventhe more appealing risk-return profiles of these bonds.We also consider WYNMAC’27 and ‘29 yield pick-upplays, trading at premium of c40-50bps over bonds of its US parent. We are neutral on MGMCHIs and SJMHOL28 on