June 14, 2017 / 8:32 AM / 6 months ago

ASIA CREDIT CLOSE: Credit stable, China CDS tighter

HONG KONG, June 14 (IFR) - Asian credit markets remained stable on Wednesday with investors waiting cautiously for the result of the US Federal Reserve’s two-day policy meeting.

China’s sovereign CDS tightened as much as 5bp to 63bp today after the Ministry of Finance yesterday announced a plan to issue sovereign US dollar bonds in the offshore market in the second half to raise Rmb2bn-equivalent (US$294m).

“The rally in China CDS was a bit surprising, but we felt it was technically driven,” said a Hong Kong-based credit trader.

He noted that Chinese tech names were in demand, with 10-year benchmark tech names 1bp tighter. Alibaba’s 2017s were bid at 99.91 in cash price, off a low of 99.883 yesterday.

The Asia ex-Japan iTraxx investment-grade index was marginally tighter at 81bp/82.50bp.

Shui On Land’s 6.40% US$600m senior unsecured perpetual non-call five securities, which priced at par on Monday, gained one point today.

Korea East-West Power’s new 2022s also traded above water at 99.197 in cash price after being reoffered at 99.152.

Reporting by Ina Zhou; Editing by Vincent Baby

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