Singapore, May 14 - Asian credit markets were firmer today as credit spreads tightened and cash bonds rallied, mainly on news that the People’s Bank of China had asked 15 banks to speed up mortgage lending to qualified buyers.
Investors apparently saw it as a sign that the central bank was easing its policies related to the slumping China property market.
Shares in Hong Kong surged more than 1% at earlier today on the back of demand for property and banking stocks.
Chinese high-yield property bonds were rebounding as a stronger buying tone emerged after the sell-off for much of last week. Country Garden 2021s were half a point higher to 92.00/92.50, while Maoye International’s newly issued 2017s were up about half a point to 100.75/101.125.
The positive sentiment also boosted other new Chinese issues. China Resources’ 2019s were quoted at 260bp/255bp over US Treasuries, inside the 275bp over UST that a USD350m tap was priced on May 8.
Bharti Airtel’s 2024s rallied to 250bp/245bp after pricing at 270bp on Monday, while Tata Motors’ unrated paper due 2021s were quoted at a cash price of 102.625/103.625, up 3 points since being sold at par on April 30.
The iTraxx Asia IG index tightened 4bp to 114bp/116bp.