Primary Market - A total of 18 offshore bonds were issued by Chinese companies this week, including 12 USD bonds and 6 HKD bonds, with issuance sizes of $2.2774 billion and HKD 83.878 billion respectively. No offshore RMB bonds were issued this week [2] - The largest single issuance in the HKD bond market was HKD 1 billion by Hong Kong Mortgage Corporation Limited, with the highest coupon rate of 3.3% issued by Henderson Land Development Company Limited [2] - In the USD bond market, the largest single issuance was $600 million by Shanghai Construction Group Co., Ltd., with the highest coupon rate of 7% issued by Chengdu Ronghe Jiatai Modern Agriculture Development Co., Ltd. and Chengdu Tianfu Dagan Group Co., Ltd. [2] Secondary Market Overview - The yield on Chinese USD bonds has mostly increased over the past two weeks. As of May 30, the Markit iBoxx Chinese USD Bond Composite Index rose by 0.42% to 242.22, while the investment-grade USD bond index increased by 0.49% to 234.97. The high-yield USD bond index decreased by 0.06% to 237.09 [3] - The real estate USD bond index fell by 0.33% to 180.27, while the city investment bond index rose by 0.11% to 148.72, and the financial bond index increased by 0.12% to 282.57 [3] Price Movements - The largest weekly price increase in offshore Chinese bonds was seen in the USD bond issued by Zhengrong Real Estate Group Co., Ltd. (ZHPRHK 9.15% 5/6/23), which rose by 148.37% to 0.75 [4] - The largest weekly price decrease was also in a USD bond issued by Zhengrong Real Estate Group Co., Ltd. (ZHPRHK 8.7% 8/3/22), which fell by 63.33% to 0.41 [6] Credit Rating Adjustments - On May 27, the credit rating of Jinneng Technology Co., Ltd. was downgraded to "AA-" with a stable outlook by United Ratings [9] - On May 27, Suqian Canal Port Development Group Co., Ltd. had its "BBB-" international long-term issuer rating withdrawn for commercial reasons by United International [9] - On May 29, the credit rating of Taikang Insurance Group Co., Ltd. was confirmed at "A-" with a stable outlook by Fitch, but subsequently withdrawn for commercial reasons [9] Default and Extension - Pengbo Telecom Media announced that the principal repayment date for the "18 Pengbo Bond" has been adjusted from May 25, 2025, to August 25, 2025, with a full principal repayment scheduled for that date [10] Domestic News - In April 2025, the Ministry of Finance reported that a total of CNY 693.3 billion in local government bonds were issued, including CNY 2.534 billion in new bonds [12] - The China Securities Investment Fund Association reported that 914.59 billion in asset-backed special plans were newly filed in April, with the top three asset types being financing lease receivables, micro-loan receivables, and accounts receivable [13] Offshore Debt Alerts - Zhengrong Real Estate announced that "H20 Zhengrong 3" will resume trading on June 3, 2025 [17] - CIFI Group announced that seven company bonds will be suspended from trading starting June 3, 2025, to ensure fair information disclosure and protect bond investors [19] - Vanke's subsidiary applied for a loan of up to HKD 6.872 billion from an overseas bank, with a term of up to two years [20] - Hailong Holdings received a winding-up petition involving $379.135 million in unpaid notes [21]
中资离岸债风控周报：一级市场发行趋缓，二级市场多数上涨