ASIA CREDIT CLOSE: China IG slumps in secondary

Last Updated: Fri, Nov 25, 2016 14:00 hrs

SEOUL, Nov 25 (IFR) - The lacklustre performance of recent Chinese investment-grade bonds continued today, in a further sign that the domestic onshore bid is not enough to counter the impact of volatile credit markets.

Bonds that provided diversification from China performed better.

Asian investment-grade CDS was 1bp wider at 128bp/130bp, according to Thomson Reuters data. Malaysia's government CDS was the worst performer on that index, with spreads rising 4bp.

Chengdu Xingcheng Investment Group's US$300m 5-year notes were bid a point lower from reoffer at 97.2, while Guangxi Communications' US$300m 3-year bonds were bid half a point lower since pricing at 99.8060, according to Tradeweb.

Dah Sing Bank's US$250m Tier 2 issue dropped by a third of a point this morning, but began regaining ground and was spotted above par this afternoon.

Macau casino operator Studio City's US$1.2bn three and five-year notes maintained trade at the 101 level since pricing.

(Reporting by Frances Yoon; Editing by Vincent Baby)

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