20260824-招银国际-Fixed_Income_Daily_Market_Update_5页_404kb

CMBI Credit Commentary Summary

Core Content Overview

This document provides a detailed market update and analysis from the Fixed Income Department of CMB International Global Markets Limited (CMBIGM), focusing on recent market movements, company performance, and upcoming issuance plans in the fixed income space. It also includes macroeconomic news, analyst comments, and important disclosures.

Market Update Summary

Asian IG Space

• Light flows observed in Asian Investment Grade (IG) space.
• Front-end Floating Rate Notes (FRNs) were under better selling.
• Indian recent new issues widened by 1-2 bps.
• In CNH space, State-Owned Enterprises (SOEs) and financials were under better selling from RMs.

HONGQI

• Net profit rose 39.2% year-on-year (yoy) in 1H26 due to increased aluminum ASP.
• Revenue increased 8.0% yoy to RMB87.5bn.
• Gross margin expanded to 31.5% from 25.7% in 1H25, driven by higher ASP of aluminum alloy products.
• Cash totaled RMB48.9bn as of Jun'26, down 10.3% from Dec'25, due to debt repayments.
• Total debts dropped 24.6% to RMB48.7bn from RMB64.6bn in Dec'25.
• Raised RMB10.2bn via 363-day CB in offshore and RMB2bn in onshore bond market.
• Subsidiary Shandong Hongqiao plans to raise RMB12bn via private placement in onshore stock market.

BABA

• Alibaba plans to issue 710mn new shares at HKD112.7 per share (cUSD10.2bn), representing 3.57% of its enlarged share capital, to boost AI spending.
• BABA shares were unchanged this morning.

Trading Desk Comments

Benchmark Papers

• 10y+ benchmark papers saw spreads widen slightly.
• Better selling flows in BABA 35s/TENCNT/KUAISH 36s.
• China benchmark spreads widened 1-3bps.
• TW lifer debts drifted 2-3bps wider.

Primary Markets

• New HYUSEC priced with a concession and tightened 8bps in secondary.
• Its generous pricing dragged other securities papers (DAESEC/HANFGI/NHSECS) 2-3bps wider.

Southeast Asia

• New HDFCB 29/31s performed well and tightened 4-6bps.
• ICICI 31s saw ongoing better buying from global PBs.
• MITSCO 31s underperformed, trading 3bps wider than reoffer.

Japan

• Better buying in FRN 31/32s alongside profit-taking in long-end financial papers.

Australia

• Better selling in 5y callable T2s versus better buying in front-end T2s.

Higher-Yielding Space

• Better selling in European and Japanese AT1s and insurance hybrids, especially in the 5y part of the curve.
• Bids were aggressive towards the offer side, with the space ~0.1pt weaker than previous day.
• Front-end issues remained welcomed in Asia for carry appeal.
• In CNH space, BIDU led a small retracement in TMT names up to ~0.4pt.
• Central and regional SOE names CHGRID/SDGOLD continued to get Southbound demand.
• LGFV space remained firm, with demand for high-yielding CNH papers.
• BBB USD LGFVs saw a modest return of buying from RMs after prolonged weakness.

Last Trading Day's Top Movers

Macro News Recap

• S&P (+0.43%), Dow (+0.98%), and Nasdaq (+0.44%) rallied higher on last Friday.
• US Aug'24 Markit manufacturing/service PMI was 53.2/56.8, compared to the expectation of 54.0/53.9.
• US Treasury yields rallied higher on Thursday.
  • 2-year yield: 4.24%
  • 5-year yield: 4.43%
  • 10-year yield: 4.74%
  • 30-year yield: 5.27%

Analyst Comments

• HONGQI: Maintained neutral stance in Chinese High Yield (HY) space. Current valuations are less compelling compared to peers like CWAHK 5.875 10/22/30, which offers a more attractive risk-return profile.
• BABA: Alibaba's new share sale aims to boost AI spending, with shares unchanged this morning.
• CPREIT: Champion REIT reported a profit of HKD617.7mn in 1H26, reversing a HKD1.57bn loss in 1H25.
• MONMIN: Mongolian Mining plans to repay USD50mn bank loan with operational cashflow.
• SDEXPR: Shandong Hi-Speed expects a swing to RMB210mn loss in 1H26 from RMB475mn net profit in 1H25 due to decline in fair value gains on financial assets.
• SINOPC: Sinopec's 1H26 revenue increased 2% yoy to RMB1.4tn, and operating profit rose 11.3% yoy to RMB37.2bn.
• VNKRLE: Vanke confirmed all public bonds due since 2026 extended.

Offshore Asia New Issues

• No new issues priced today in Offshore Asia.

Offshore Asia New Issues Pipeline

Important Disclosures

• Conflicts of Interest: CMBIGM or its affiliates may have investment banking relationships with the issuers covered in this report.
• Author Certification: The author certifies that the views expressed accurately reflect personal views and that no compensation was directly or indirectly related to these views.
• Trading Restrictions: The author and associates did not trade in the stocks covered in the past 30 days and will not trade within 3 business days after the report is issued.
• Disclaimer: This report is for information purposes only and does not constitute investment advice. It is not an offer or solicitation to buy or sell any securities. The information is not guaranteed and may be subject to change.

Legal and Distribution Information

• UK Recipients: This report is only for persons within Article 19(5) of the Financial Services and Markets Act 2000 or Article 49(2)(a) to (d) of the Order. It may not be provided to others without prior written consent.
• US Recipients: CMBIGM is not a registered broker-dealer in the US. This report is for "major US institutional investors" only and should not be distributed to others.
• Singapore Recipients: This report is distributed by CMBISG, an Exempt Financial Adviser in Singapore. Legal responsibility for non-accredited investors is limited by law.

Contact Information

• Tel: (852) 3900 0801 / (852) 3761 8919
• Email: fis@cmbi.com.hk
• Author: cyrenang@cmbi.com.hk