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 economy.
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.