SINGAPORE, March 24 (IFR) - Chinese property bonds traded up
today, despite a lower-than-expected China March Flash PMI.
China's March flash PMI fell to 48.1, compared with the
consensus estimate of 48.7, indicating industrial activity
contracted further in March. 'The PMI has more of an effect on
the currency market than on the bonds," a bond trader said.
High-yield property names were up about 1 point, in general,
on buying interest from private banks and short covering of
hedge funds. Evergrande Real Estate's 2015s were indicated at
103/104, while its 2018s were around 93/93.5, both up about 25
cents. KWG Properties and Kaisa Group also drew attention.
PBs were also keen on industrial names, such as Fufeng
Group, Liansu Group and MIE Holdings. Those were the names that
were not sold off quite as much in the last few weeks, traders
said. However, as they are more closely held, any buying
interest can lift prices.
China Fishery held an investor call today to announce the
completion of its USD650m refinancing loan, as well as the
termination of its long-term supply contract with its Russian
partner. However, the announcement failed to move its bonds. The
2019s still hovered around par.
Meanwhile, Shui On Land concluded a non-deal roadshow in
Singapore today. The management said the company would refinance
its due-2015 bonds in June this year, according to a source, who
attended the roadshow.
In South-East Asia, Olam bonds continued to rise on the back
of the Temasek offer to buy out the company. Its 2018s were
indicated at 104/104.5, compared with low-90s before the offer.
Trading among investment-grade names was quiet today with
the Asia ex-Japan IG iTraxx index quoted at 132bp/134.2bp,
tighter than Friday.