HONG KONG, Oct 19 (IFR) - Asian credit markets were firmer on Thursday as Chinese names tightened after China reported that economic growth had slowed slightly in the third quarter.
China’s economy grew 6.8% in the third quarter from a year earlier, in line with the consensus of economists, but decelerated from 6.9% in the second quarter.
“We felt Chinese investment-grade segment was more driven on demand than on the GDP data, as high-yield new issues dominated supply this week,” said a Hong Kong-based trader.
All four Chinese new issues, being marketed on Thursday, are in the high-yield area.
The trader noted that 10-year Chinese IG names were seen 2bp-3bp tighter on demand from real-money investors, while new issues in the high-yield sector also traded up.
The iTraxx Asia IG index was slightly tighter at 74bp/75bp.
CDB Financial Leasing’s new 2023s and 2027s were spotted 4bp tighter.
Chinese department store operator Maoye International Holdings’ 7% 364-day notes, which were priced at par, were bid at 100.75 in cash.
Future Land Development Holdings’ 5.0% 2020s were bid at 101.25 in cash. It announced on Tuesday that shareholders had rejected a proposed buyout offer from company chairman Wang Zhenhua.
Reporting by Ina Zhou; Editing by Dharsan Singh