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ASIA CREDIT CLOSE: Asian credits weaken amid profit taking, China worries
May 20, 2014 / 10:07 AM / 3 years ago

ASIA CREDIT CLOSE: Asian credits weaken amid profit taking, China worries

SINGAPORE, May 20 (IFR) - Asian credits weakened across the board today as investors took profits in South-East Asian securities and as market players assessed the effects of new banking rules in China on China credits.

China’s regulators are moving to regulate the interbank lending market as part of their effort to rein in off-balance sheet lending and property-related lending.

There were no live bond offerings in Asia’s primary market, meanwhile, although some roadshows for future deals were underway.

Bonds from Indonesia and the Philippines bonds came under selling pressure in the secondary market as investors took advantage of recent gains. Indonesia’s sovereign 2044s were quoted at 115.84/116.28 this afternoon from 116.55 on Monday. The Philippines’ 2034s fell to 128.539/128.889 from 129.00 mid-price yesterday.

Perusahaan Gas Negara 2024s were quoted at 99.035/99.148 from 99.448 yesterday, and Bharti Airtel 2021s traded at about 100.286/100.666 from 100.338 on Monday.

In China’s high yield sector, Country Garden’s 2021s fell slightly to about 92.393/93.02 from 92.43 on Monday. Wanda’s 2018s also fell slightly to 99.051/99.453 from 99.10 yesterday. Evergrande’s 2018s lost more to 89.90/90.567 today from 90.225 previously.

Bonds in China’s oil sector held up, however. China National Petroleum’s 2019s traded at around 13 cents higher at 99.8975/100.041 this afternoon.

nethelie.wong@thomsonreuters.com

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