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HONG KONG, March 14 (IFR) - Asian credit markets were weaker on Wednesday in line with a sluggish performance in regional stock market after reports that the US may impose new tariffs on Chinese imports.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4% at the time of writing and China’s SSE Composite index closed down 0.57%.
In credit markets, traders noted that flows were concentrated in the investment-grade sector, with Chinese IG names generally seen 2bp-3bp wider.
Some primary deals from Chinese issuers were put on hold. “Given the supply concerns, investors were asking for increasingly bigger new-issue premiums.
Some of our clients have put off bond offerings, looking for a better window,” said a Hong Kong-based syndicate banker.
The iTraxx Asia ex-Japan investment-grade CDS index was 0.7bp wider at 65.1bp/65.6bp.
Qingdao China Prosperity State-owned Capital Operation’s new 2021s were seen 6bp tighter, while its new 2023s were 3bp-5bp wider.
Greenland’s Dim Sum notes due 2021 traded below water. The notes were quoted at 99.65/99.75 from reoffer yesterday at 99.80.
Huawei’s 2022s were bid at a cash price of 97.96, slightly lower than the closing price of 98.06 yesterday, according to Tradeweb.
HNA Group’s 2019s fell by 0.1 point to a cash price of 93.50, while Sunac China’s 2022s were bid at 102.03 after touching a high of 102.10 yesterday.
HNA Infrastructure Investment Group on Monday said it plans to sell a property unit and a logistics unit to property developer Sunac China for a total of Rmb1.9bn (US$300.47m).
Reporting by Ina Zhou; Editing by Vincent Baby