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 had its "BBB-" international long-term issuer rating withdrawn for commercial reasons by United International [9] - On May 29, the credit rating of Taikang Insurance Group Co., Ltd. was confirmed at "A-" with a stable outlook by Fitch, but subsequently withdrawn for commercial reasons [9] Default and Extension - Pengbo Telecom Media announced that the principal repayment date for the "18 Pengbo Bond" has been adjusted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]

Primary Market - In the past two weeks (April 28, 2025 - May 9, 2025), a total of 23 offshore bonds were issued by Chinese entities, including 4 RMB bonds, 8 USD bonds, 9 HKD bonds, and 2 EUR bonds, with issuance scales of 1.716 billion RMB, 582.57 million USD, 145.156 billion HKD, and 16 million EUR respectively [2] - The largest single issuance in the RMB bond market was 1 billion RMB by Hong Kong and China Gas Company Limited, while the highest coupon rate was 6.5% issued by Neijiang Investment Holding Group Co., Ltd [2] - In the USD bond market, the largest single issuance was 100 million USD, with three bonds reaching this scale, issued by Industrial and Commercial Bank of China London Branch, China Construction Bank, and Zhongyuan Asset Management Co., Ltd. The highest coupon rate was 7.6% issued by Xianning Urban Development Group Co., Ltd [2] Secondary Market Overview - In the past two weeks, the yield on Chinese USD bonds mostly declined. As of May 9, 2025, the Markit iBoxx Chinese USD Bond Composite Index fell by 0.17% to 241.03, while the investment-grade USD bond index decreased by 0.24% to 233.84, and the high-yield USD bond index dropped by 0.31% to 235.76 [3] - The real estate USD bond index increased by 0.53% to 179.64, while the city investment USD bond index rose by 0.11% to 148.21, and the financial USD bond index slightly increased by 0.03% to 281.54 [3] Price Movements - The largest weekly price increase among Chinese offshore bonds was for the bond issued by Zhengrong Real Estate Group Co., Ltd., which rose by 164.85% to 1.03 [4] - The largest weekly price decrease was for the bond issued by Peng Bo Telecom Media Group Co., Ltd., which fell by 74.43% to 1.95 [5] Benchmark Spread - As of May 9, 2025, the spread between the 10-year benchmark government bonds of China and the US widened to 275.98 basis points, an increase of 22.46 basis points since April 30, 2025 [6] Rating Changes - On April 30, 2025, China Chengxin International Credit Rating Co. withdrew the long-term credit rating of "BBBg-" for Longyou County State-owned Assets Management Co., Ltd. due to commercial reasons [9] - Moody's maintained the "A2" issuer rating for China State Construction Engineering Corporation, changing the outlook from "stable" to "negative" [9] - On May 6, 2025, United Ratings terminated the credit rating for Suining Xingye Investment Group Co., Ltd. [9] Default and Extension - Zhongjun Group announced it would likely be unable to repay the principal and interest of the CHINSC 7 05/02/25 bond on time, leading to its delisting on May 2, 2025 [10] Domestic News - The interbank bond market officially launched technology innovation bonds, with 36 companies announcing a total issuance of 21 billion RMB as of May 8, 2025 [12] - The total scale of bonds issued and listed by financial institutions in Macau exceeded 900 billion MOP, with a year-on-year growth of 25.7% [13] - Starting May 6, 2025, the London Clearing House began accepting offshore Chinese government bonds as eligible non-cash collateral [14] Overseas News - The Federal Reserve decided to maintain the benchmark interest rate at 4.25%-4.50%, leading to a recovery in US Treasury trading sentiment [15] - The Bank of England announced a 25 basis point reduction in the benchmark interest rate to 4.25% on May 8, 2025 [17] Offshore Debt Alerts - Country Garden extended the deadline for its restructuring support agreement fee to June 6, 2025, with over 50% of public noteholders participating [18] - Aoyuan Group plans to hold a bondholder meeting to adjust the repayment scheme for "H20 Aoyuan 2" [19] - CIFI Group announced the sale of part of its assets to prioritize repayment of "H21 CIFI 3" bondholders [20] - Vanke decided to fully redeem its domestic bonds "20 Vanke 06" and "22 Vanke 03," totaling 1.55 billion RMB [21] - Poly Real Estate reported a contract sales amount of 564 million RMB for April 2025 [22]

Primary Market - A total of 19 offshore bonds were issued this week, including 6 offshore RMB bonds, 6 USD bonds, 4 HKD bonds, and 3 EUR bonds, with issuance sizes of 54.2 billion RMB, 615 million USD, 798.8 billion HKD, and 1.9 million EUR respectively [1] - The largest single issuance in the offshore RMB bond market was 1 billion RMB by the Asian Development Bank, while the highest coupon rate was 6.5% issued by Huangshi Chantuo Holdings Group [1] - In the USD bond market, the largest single issuance was 200 million USD by Chengdu Economic Development Investment Group, with the highest coupon rate of 7.0% from two issuers: Fuzhou Digital Economy Investment Group and Emei Mountain Modern Agriculture Development Group [1] Secondary Market - The yield on Chinese offshore USD bonds rose across the board this week, with the Markit iBoxx Chinese USD bond composite index increasing by 0.33% to 240.93 [2] - The real estate USD bond index saw a significant increase of 1.94%, closing at 180.28, while the city investment bond index rose by 0.14% to 148.05 [2] Price Movements - The largest weekly price increase in Chinese offshore bonds was for the MOLAND 8% 12/30/24 bond from Contemporary Land, which rose by 56% to 2.75 [3] - The largest weekly price drop was for the HONGSL 5% 8/19/29 bond from Hongyang Group, which fell by 125.84% to 6.72 [5] Benchmark Spread - The spread between the 10-year benchmark government bonds of China and the US narrowed to 265.35 basis points, a decrease of 3.21 basis points from the previous week [6] Rating Changes - Moody's maintained the "A3" issuer ratings for China Railway Group and China Railway Construction, changing the outlook from "stable" to "negative" on April 24 [9] - Moody's also maintained the "Baal" issuer rating for China Communications Construction Group, adjusting the outlook to "negative" on April 25 [9] Defaults and Extensions - Xinyuan (China) Real Estate's bond "H20 Xinyuan 1" received approval for a 2-year extension, with the new maturity date set for November 13, 2027 [10] - Sunshine City Group failed to make timely payments on its 2020 first phase medium-term notes, with the company unable to raise sufficient funds by the accelerated maturity date [11] Market News - The issuance of the 2025 ultra-long special treasury bonds began on April 24, with a total planned issuance of 1.3 trillion RMB [12] - The first data center holding-type real estate ABS in the country was listed on the Shanghai Stock Exchange, raising a total of 1.6092 billion RMB [13] - The People's Bank of China conducted a 600 billion RMB MLF operation to maintain liquidity in the banking system [14] Overseas News - Some Federal Reserve officials hinted at the possibility of earlier interest rate cuts if economic conditions worsen [15] - Demand for US Treasury bonds from overseas reached a new low, with indirect bidders accounting for only 56.2% of the latest auction [16] Offshore Bond Alerts - Zhengrong Real Estate's proposal to extend the "H20 Zhengrong 2" bond was not approved, leading to a failure to repay interest [17] - Futong Group plans to pay interest on "H21 Futong 1" by April 28, 2025 [18] - The proposal for delisting 18 company bonds from AVIC Industrial was not approved, and the bonds will resume trading [19] - Aoyuan Group announced that three bonds, including "H20 Aoyuan 1," will be suspended from trading starting April 28 [20]