October 19, 2017 / 8:23 AM / a year ago

ASIA CREDIT CLOSE: Credit firmer after release of China GDP data

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

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