20230419-招银国际-Fixed_Income_Daily_Market_Update_5页_782kb

Fixed Income Daily Market Update Summary - April 19, 2023

China Economy

• GDP growth in Q1 2023 exceeded expectations at 4.5%, driven by strong service and retail sectors.
• CMBI revised GDP forecast for 2023 from 5.4% to 5.7% and maintained 2024 forecast at 4.9%.
• Industrial output and retail sales beat forecasts, while employment showed improvement but remains tepid, with youth unemployment rising.
• Factors: Consumption recovery, but industrial slowdown in some sectors.

Market Updates

• Trading focused on new issues: CK Hutchison priced USD 125 billion 5-year and 10-year bonds, and Sumitomo Mitsui Finance & Leasing issued a 5-year bond.
• Bond performances: Mixed trading, with gains in financials and tech sectors like Meituan, JD, and Lenovo; losses in real estate and industrial sectors like Dalian Wanda.
• Asia market: Region focused on new issues, with varying flows; China SOEs stable amid two-way trading.

Macroeconomic News

• US markets mixed, inflation concerns, Fed hawkish comments increasing likelihood of rate hikes.
• Treasury yields stable; China macro data showed consumption recovery underway.

Key Events

• Fitch downgraded Weifang Urban Construction Development Investment to BB+.
• Company developments: CENCHI CCRES announced exchange offer results; Dalian Wanda secured a USD 800 million credit line; Evergrande's redevelopment project transferred; Far East Horizon ABS approved; Various loan disputes and acquisitions reported.