Zhao Yin Guo Ji·2025-12-09 08:16Report Industry Investment Rating - Not provided in the given content Core Viewpoints - The LGFV space had a firm session, with higher - yielding bonds up to 1.0pt higher across CNH and USD papers yielding c9% due to HF buying, and RMs and structured products teams continued to buy onshore AAA - guaranteed papers [3] - CMBI expects China's goods exports to decrease from 5.2% in 2025 to 3.5% in 2026, imports to rebound from - 0.5% to 2%, and the USD/RMB exchange rate to decrease from 7.07 at the end of 2025 to 7.02 at the end of 2026 [4][17][21] - DWCM launched a consent solicitation to extend the maturity of DALWAN 11 02/13/26 for two years, and analysts continue to view DWCM as a survivor of the sector and maintain a buy on DALWANs [8][10] Summary by Relevant Catalogs Trading Desk Comments - Yesterday, there was better - selling on quasi - sovereign KR corps FRNs and better - buying on front - end FRNs across JP/AU/CN/ME financial names. NTT 30s widened 4bps, TW lifers FUBON/NSINTW widened 2 - 4bps, DALWAN 26s rose 1.1pts, FAEACO 12.814 Perp edged 0.5pt higher, EHICAR 26 - 27 was unchanged, VNKRLE 27 - 29 recovered 1.5 - 1.6pts, LNGFOR 27 - 32/FUTLAN 28/FTNHD 26 - 27 were 0.1 - 0.4pt higher, YLLGSP was 0.1pt lower, SMCGL Perps were 0.1 - 0.7pt lower, GARUDA 31s were down by 0.5pt, VEDLN 28 - 33s were unchanged to 0.1pt lower, and GLPSPs were 0.1 - 0.3pt higher [2] - This morning, the new MINMET 4.25 Perp and MINMET 4.35 Perp were largely unchanged from RO at par, PBs were selling Asian FRNs with unchanged spreads, LNGFOR 28/QDJZWD 28/VNKRLE 29 were 0.5 - 0.7pt higher, BIMLVN 27/EHICAR 26 were 0.8 - 1.0pt lower, and there were active two - way flows on USD and AAA - guaranteed LGFV issues. DALWAN 26s were unchanged [4] Top Performers and Underperformers - Top performers included VNKRLE 3.975 11/09/27 (price 21.4, change 1.6), VNKRLE 3 1/2 11/12/29 (price 20.6, change 1.5), CFAMCI 4.95 11/07/47 (price 92.0, change 1.4), DALWAN 11 02/13/26 (price 93.7, change 1.1), and DALWAN 11 01/12/26 (price 99.0, change 1.1) [5] - Top underperformers included TOPTB 4 7/8 01/23/43 (price 88.1, change - 1.0), TOPTB 5 3/8 11/20/48 (price 93.4, change - 1.0), TOPTB 4 7/8 01/23/43 (price 88.4, change - 1.0), CHINAM Float 07/10/27 (price 100.1, change - 0.9), and PTTTB 4 1/2 10/25/42 (price 87.3, change - 0.9) [5] Macro News Recap - On Monday, S&P (- 0.35%), Dow (- 0.45%), and Nasdaq (- 0.14%) were lower, and UST yield was higher. The 2/5/10/30 - year yield was at 3.57%/3.75%/4.17%/4.81% [7] Desk Analyst Comments on DALWAN - DWCM launched a consent solicitation to extend the maturity of DALWAN 11 02/13/26 (o/s USD400mn) for two years to 13 Feb'28 with mandatory partial redemptions of 12.5% each on 30 Jan'26, 13 Aug'26, 13 Feb'27, and 13 Aug'27, and the remaining 50% at the new maturity. It also seeks to lower the minimum total equity requirement for Wanda HK to HKD300mn from HKD800mn and add a par call option. The early consent fee is 1pt, and the early consent deadline is on 19 Dec'25 [8] - If DWCM cannot secure 90% consent in principal amount, an extraordinary meeting will be held. The meeting is quorate if two or more persons holding or representing not less than 66% of the aggregate principal amount are present, and the extraordinary resolution passes if at least 50% of the votes cast are in favor [9] - DWCM intends to repay USD300mn DALWAN 11 01/12/26 from funds (estimated at RMB2.4 - 2.5bn or cUSD339 - 354mn) from the PAG - led consortium expected to be received within the next two weeks. Analysts view DWCM as a survivor and maintain a buy on DALWANs [10] China Economy - China's exports beat market expectation due to improvement in exports to the EU, Latin America, and Africa, while exports to the US and ASEAN underperformed. Exports of integrated circuits rallied, and ships and vehicles remained prosperous, but personal consumption goods were subdued. Imports improved slightly due to processing trade, while general trade dipped [16] - In November, exports rebounded to 5.9% YoY from - 1.1% in October, exports to the US contracted further, exports to the EU, Latin America, and Africa rose, and there was a broad - based rebound. Exports to ASEAN moderated. Trade surplus expanded to US$111.7bn [18] - Integrated circuits surged 34.2% in November, transport equipment remained robust, personal consumption goods and housing - related products were subdued, and rare earth exports expanded. Imports inched up to 1.9% in November, with processing trade accelerating and general trade dipping [19][20] - In 2026, China's goods exports are expected to moderate due to global demand decline and high base effects from 2025. Exports of some industries and to some destinations may remain strong [21] Offshore Asia New Issues - New issues (priced): China Minmetals Corp issued 600mn USD PerpNC3.5 at 4.25% and 600mn USD PerpNC5 at 4.35%, with a Baa2 rating [24] - New issues (pipeline): Chengdu Xingcheng Investment Group plans a 3 - year issue at 4.6% with a BBB+ rating, and Halcyon Agri Corporation plans a PerpNC3 issue at 6.4% (unrated) [25] News and Market Color - Yesterday, 83 credit bonds were issued onshore with an amount of RMB70bn, and month - to - date, 529 credit bonds were issued with a total amount of RMB501bn, a 9.3% yoy increase [26] - Moody's changed the outlook of Adani Green Energy restricted groups to stable from negative and affirmed Ba1 rating; BNP Paribas priced USD1.25bn PerpNC8 AT1 at 6.875%; Far East Consortium plans to sell a 50% stake in a Ritz Carlton hotel in Perth for AUD100mn; Korea Development Bank launched due diligence for HMM privatization; LG Energy Solution obtained a KRW2.1tn contract to supply batteries for Mercedes - Benz; NWD to defer distributions on two perpetual bonds; Fitch upgraded Oman to BBB - from BB+ and Saudi National Bank to A from A -; POSCO Holdings is considering acquiring a stake in a US - based steelmaker; SoftBank Group is in talks to participate in a funding round for Skild AI [26] - In the US, media reported Vanke, Shenzhen government, and PBOC held a meeting with bondholders of Vanke's CNY 2bn 3% onshore bond, and S&P revised the outlook of Xiaomi to positive from stable [35]