HONG KONG, March 13 (IFR) - Chinese credits took a beating
Thursday after the release of weak industrial output data
sparked worries about the growth of the world's second-largest
Chinese oil-and-gas credits were 5bp-7bp wider. Sinopec
2043s were 5bp wider at 163bp/158bp over US Treasuries, the
2023s were also wider at 156bp bid, while CNOOC's 2023s were 5bp
wider at 170bp/165bp.
Traders said Chinese banks were also widened 5bp on the day
from yesterday's levels.
Chinese property bonds were not spared as they weakened 1.5
points lower from yesterday's level on the news.
The new 5-year bond issue from Franshion properties traded
at 100.25 after printing at par to yield 5.75% yesterday.
Chinese CDS spread was 1bp-2bp wider on the day, but traders
expected that to widen further.
In addition to macroeconomic worries, traders were also
selling Chinese credits on expectations of further supply.
After Franshion and Times Property sold bonds yesterday,
Beijing Infrastructure Investment was in the market today with
5-year issue at 255bp over US Treasuries.