May 26, 2017 / 8:05 AM / 7 months ago

ASIA CREDIT CLOSE: Credit stable with new issues mixed

HONG KONG, May 26 (IFR) - Asian credit markets saw limited activity on Friday as new issues delivered mixed performances.

Lenovo’s US dollar bonds underperformed after the group published its annual earnings report.

“There was not much activity today. Some highly rated names traded slightly tighter and others marginally wider,” said a Hong Kong-based investment-grade trader.

New issues from Chinese names were mixed after Moody’s surprise cut of China’s sovereign credit rating on Wednesday.

Meanwhile, the renminbi extended Thursday’s 0.3% gain against the US dollar, hitting its strongest level in more than three months, in a sign of government support to shore up the currency in the wake of Moody’s downgrade.

China National Chemical Corp’s new US$600m senior perpetual non-call five notes held up well in secondary trading, lastly bid at 100.8. Dr Peng Telecom & Media Group’s new 2020s were spotted at 100.7/100.8.

However, Nanyang Commercial Bank’s new AT1 traded under water, quoted at 99.5/99.7, while Beijing Gas was quoted 98.81/98.93 after being priced at par.

The iTraxx Asia ex-Japan investment-grade index was flat at 90/91.

Lenovo Group’s 3.875% 2022s were spotted 4bp wider after the world’s largest personal computer maker reported profit of US$535m in the year to March on revenue that fell 4%, just missing analyst estimates.

Reporting by Ina Zhou; Editing by Vincent Baby

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