SINGAPORE, March 18 (IFR) - Bonds from property developers
suffered amid local Chinese media reports that a property
company based in Zhejiang province had defaulted on loans
amounting to CNY3.5bn.
The move happened even as stocks of some of developers
rallied. Shares of KWG Property Holding ended the session up
9.97% after the company reported lower gearing and stable growth
in its latest earnings report.
Meanwhile, KWG's 2019 bonds closed about 25 cents weaker,
quoted at 95.00/96.00.
KWG, however, was among the outperformers among Single B
Evergrande's 2018s were the worst performing, dropping by as
much as USD1 by the Asian close, quoted at 92.50/93.50. Other
higher beta liquid bonds, such as Kaisa's 2018s, were down by
some 50 cents on average.
"We are not trading on fundamentals here," noted a
high-yield trader. "Some guys seem to be saying, 'Ok, get me out
so I can buy cheaper later'," he said, adding that volumes were
thin in spite of the price action.
On the investment-grade side it was different. The Asia
ex-Japan IG iTraxx index ended the day about 1bp lower at 130bp
Indonesian names were outperforming among cash bonds, with
most of the sovereign and quasi-sovereign bonds quoted about
USD1.5 higher since last Tuesday. Investors were cheering that
Jakarta governor Joko Widodo officially entered the election for