Bank of Hong Kong suspends mortgage loans to Evergrande’s unfinished properties. High-yield U.S. dollar bond index drops to a new low this year | U.S. dollar debt

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Original Title: Daily | Hong Kong Bank suspends mortgage loans to Evergrande’s unfinished properties, and the high-yield US dollar bond index drops to a new low this year

Source: U.S. dollar bond tracking

　　Yesterday’s key review

　　Market Recap

　　Market overview:It is reported that Biden’s staff generally support Powell’s re-election as Fed chairman. The European Central Bank’s monetary policy guidelines to be announced on Thursday are expected to undergo subtle changes. The US Deputy Secretary of State will visit China from July 25 to 26 and hold talks with Foreign Minister Wang Yi and others. It is reported that the four banks in Hong Kong have suspended some mortgage loans to buyers of Evergrande’s unfinished properties in Hong Kong. Henan and Hebei continue to issue red warnings for heavy rains.

In terms of Chinese dollar bonds, the investment grade index fell 0.15%, and the high-yield index fell 0.89%. The US high-yield index rose 0.18%, and the investment grade index fell 0.32%.

　　Investment grade:The Chinese-funded US dollar bond investment-grade market was mixed in the early trading, and small-scale buying appeared after the US bond yields climbed in the afternoon. State-owned enterprises and technology sectors narrowed slightly by 1~2bp, while AMC sector Huarong remained stable. In terms of new bonds, Chinalco’s 5-year bonds narrowed by 3~5bp driven by new pricing.Shenzhen ExpresswayThere is buying support.

　　High-yield aspects:The high-yield market index of Chinese dollar bonds fell to a new low since the beginning of the year, and the overall weakness continued.Four Hong Kong banks suspend partial mortgage loans to buyers of Evergrande’s uncompleted Hong Kong properties, Triggered another round of selling to Evergrande, causing the Evergrande curve to fall again by 6-9pt, continuing to refresh historical lows. The names of Kaisa, Fantasia, and Yuzhou with single B ratings fell by about 1 to 3pt, and names with BB ratings fell 0.5pt.

　　1. Global market overview

　　Global Market Review

Table 2: The performance of global major asset classes (updated this morning)

Table 3 (1): Performance of major interest rate varieties in China and the United States (updated this morning)

　　2. U.S. dollar debt secondary market

　　1. The secondary transactions of active coupons

　　(1) Investment-grade active coupons

The Chinese-funded US dollar bond investment-grade market was mixed in the early trading, and small-scale buying appeared after the US bond yields climbed in the afternoon. State-owned enterprises and technology sectors narrowed slightly by 1~2bp, while AMC sector Huarong remained stable. In terms of new bonds, Chinalco’s 5-year bonds narrowed by 3~5bp driven by new pricing. Shenzhen Expressway has buying support.

Table 4: The rise and fall of investment-grade active bonds

(2) High-yield active coupons

The high-yield market index of Chinese dollar bonds fell to a new low since the beginning of the year, and the overall weakness continued.Four Hong Kong banks suspend partial mortgage loans to buyers of Evergrande’s uncompleted Hong Kong properties, Triggered another round of selling to Evergrande, causing the Evergrande curve to fall again by 6-9pt, continuing to refresh historical lows. The names of Kaisa, Fantasia, and Yuzhou with single B ratings fell by about 1 to 3pt, and names with BB ratings fell 0.5pt.

Table 5: The rise and fall of high-yield active coupons

(3) Distressed section

For other active coupons, Peking University Founder, Tsinghua Unigroup, Tus-Kehua, etc. have seen slight price fluctuations.

Table 6: The rise and fall of the Distressed sector

(4) Performance of newly issued bonds

Table 7: Recent performance of newly issued bonds

　　3. New USD bond issuance market

　　New Issue Market

　　1. New debt pricing

　　[Pricing]Issuer/Guarantor: Lai Sun Development

　　Issuance structure: guaranteed issuance

　　Scale: USD 250 million

　　Term: 5 years

　　IPT: 5.10% area

　　FPG：5%

　　JGCs, JLMs & JBRs: BNP Paribas, DBS, HSBC, UBS

　　[Priced]Issuer/Guarantor:China Shiplease

　　Issuance structure: guaranteed issuance

　　Scale: US$500 million

　　Term: 5 years

　　IPT: CT5+185bps area

　　FPG：CT5+145bps

　　Issuer/Guarantor Rating (M/S/F): -/A-/A

　　Expected debt rating/debt rating (M/S/F): -/A-/A

　　JGCs, JLMs & JBRs: Bank of China Hong Kong, CCB International, CITIC CLSA, DBS Bank

　　JLMs & JBRs: ABCI,Bank of Communications, CMB International, CNCB Capital, Agribusiness, Haitong International,Shanghai Pudong Development BankHong Kong branch, SPDB International

　　[Priced]Issuer/Guarantor:Aluminum Corporation of China

　　Issuance structure: guaranteed issuance

　　Scale: US$500 million/US$500 million

　　Term: 3 years / 5 years

　　IPT: T3+170bps area / T5+185bps area

　　FPG：T3+125bps/T5+145bps

　　Issuer/Guarantor Rating (M/S/F): -/BBB-/A-

　　Expected debt rating/debt rating (M/S/F): -/-/A-

　　JGCs，JLMs & JBRs：CITIC BankInternational, DBS Bank,Bank of China(Bank of China International and Bank of China), China Construction Bank (Asia)

　　JLMs & JBRs: Barclays, CALM, FranceIndustrial Bank, Shanghai Pudong Development Bank Hong Kong Branch

　　[Pricing]Issuer/Guarantor: Jiangsu Century New City

　　Issuance structure: guaranteed issuance

　　Scale: US$110 million

　　Duration: 364 days

　　FPG：6.5%

　　JGCs，JLMs & JBRs：Guotai JunanInternational, Jinxin Futures Securities

　　2. New announcement

　　[Announcement]Issuer/Guarantor: Guangzhou Industrial Investment Fund

　　Issuance structure: guaranteed issuance

　　Scale: USD benchmark

　　Term: 5 years

　　Issuer/Guarantor Rating (M/S/F): -/-/A-

Expected debt rating/debt rating (M/S/F): -/-/A-

LGC: Guotai Junan International

　　JGCs: Guotai Junan International, Bank of China International, ABCI

　　JLMs & JBRs ：Everbright BankHong Kong branch, China Industrial Securities International,CICC, CITIC CLSA, CMBC Capital, China Merchants Wing Lung Bank,Dongxing Securities(Hong Kong),GF Securities, Haitong International, Huatai International

　　Roadshow time:

　　A series of conference calls for fixed income investors will be held on July 21, 2021

　　[Announcement]Issuer/Guarantor: China CITIC Bank International

　　Issuance structure: direct issuance

　　Scale: USD benchmark

　　Issuer/Guarantor Rating (M/S/F): A3/-/BBB+

　　Expected debt rating/debt rating (M/S/F): B2/-/-

　　JGCs, JLMs & JBRs: China CITIC Bank International, Citigroup, CITIC Lyon

JLMs & JBRs: ABCI, BOCOM International, Everbright Bank Hong Kong Branch, CICC,China SecuritiesInternational, CMB International, China Merchants Wing Lung Bank, CMBC Capital, CNCB Capital, Haitong International, HSBC, Huatai International, ICBC International, Industrial Bank Hong Kong Branch, Bank of America Securities, Mizuho Securities, Shanghai Pudong Development Bank Hong Kong Branch, Silk Road International, SPDB International

Roadshow time: A series of conference calls for fixed income investors will be held on July 21, 2021

　　[Announcement]Issuer/Guarantor:Shandong Iron and Steelgroup

　　Issuance structure: guaranteed issuance

　　Scale: USD benchmark

　　JGCs, JLMs & JBRs: DBS Bank, Zhongtai International, Bank of China, Standard Chartered Bank, CEB International, Huatai International, Tianfeng International

　　JLMs & JBRs: Bank of Communications International, Zhongda Securities,Minsheng BankHong Kong branch, China Securities Investment International, CMBC Capital, CMB International,Orient Securities(Hong Kong), Shanghai Pudong Development Bank Hong Kong Branch

　　Roadshow Conference: A series of conference calls for fixed income investors will be held on July 21, 2021

　　[Announcement]Issuer/Guarantor: Ping An Real Estate

　　Issuance structure: Maintenance Agreement

　　Provider of the maintenance agreement: Ping An Real Estate Co., Ltd.

　　Scale: USD benchmark

　　Weihao Agreement Provider Rating (M/S/F): Baa2/-/-

　　Expected debt rating/debt rating (M/S/F): Baa3/-/-

　　JGCs, JLMs & JBRs: Bank of China Hong Kong, CCB International, CITIC CLSA, DBS Bank

　　JLMs & JBRs: ABCI, Bank of Communications, China Merchants Bank International, CNCB Capital, CA-CI, Haitong International, Shanghai Pudong Development Bank Hong Kong Branch, SPDB International

　　Roadshow time: A series of conference calls for fixed income investors will be held on July 19, 2021

　　3. Announced

　　Nothing.

　　Note: The data in this article comes from Bloomberg, WIND, and USD bond tracking research. This article is for information only and does not constitute investment advice.

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Editor in charge: Zhao Siyuan