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Core Viewpoint - Kadestone Capital Corp. has appointed Kevin Hoffman as the new CEO and director, highlighting a strategic leadership transition aimed at driving the company's growth and community engagement [1][3]. Company Overview - Kadestone Capital Corp. focuses on investment, acquisition, development, and management of residential and commercial income-producing properties, as well as procurement and sale of building materials in urban centers and emerging markets in Canada [4]. - The company operates five complementary business lines: building materials procurement and supply, property development and construction, construction finance, asset ownership, and property management, aiming to become a market-leading vertically integrated property company [4]. Leadership Transition - Kevin Hoffman, previously the Chief Development Officer, has extensive experience in real estate, including leading significant redevelopment projects and managing diverse portfolios [2]. - Dr. Anthony Holler, Chairman of the Board, expressed confidence in Hoffman's ability to lead the company through its next growth phase, emphasizing his strategic vision and leadership skills [3]. - Brent Billey will continue as President and remain on the board, recognized for his foundational role in the company's development and significant milestones during his tenure as CEO [3].

1. Report Industry Investment Rating - No industry investment rating is provided in the report. 2. Core Viewpoints - The Chinese/HK properties performed strongly overall, especially VNKRLE bonds due to the reported SZ government rescue plan for Vanke. The deflationary pressure in China continued to ease in early 2026, and mild price reflation is expected in 2026, which should improve corporate profitability and support the capital - market performance of materials and cyclical sectors [2][3][12]. 3. Summary by Relevant Catalogs Trading Desk Comments - Yesterday, the new CHIFEN 7.4 02/13/29 lowered by up to 1.0pt from RO at par. Chinese AMC space was firm, while HK bank T2s BNKEA/NANYAN widened 5 - 6bps, and Chinese TMTs KUAISH/MEITUA widened 2 - 5bps. Higher - beta names FRESHK 26 - 29s/ZHOSHK 28 closed 7 - 13bps wider. EHICAR 27 dropped 2.1pts, and EHICAR 26 closed 0.3pt lower. VNKRLE 27' and 29' surged 8.0 - 8.8pts on the SZ government rescue plan report. LNGFOR 27 - 32s/FUTLAN 28/FTLNHD 26 - 27 edged 0.1 - 0.4pt higher. Seazen Group raised HKD472.3mn (cUSD60.4mn) through a private share placement. LASUDE 26 rose 1.5pts, NWDEVL/VDNWDL complex gained 0.2 - 0.9pt, and FAEACO 12.814 Perp closed 0.8pt higher. In SE Asian space, PTTGC 31 - 52s widened 1 - 5bps, PTTGC Perps leaked 0.1 - 0.2pt, VLLPM 27 - 29 were down 1.0 - 1.8pts, and SMCGL Perps were 0.1pt higher. In KR space, POHANG/SKBTAM/HYNMTR/LGENSO stabilized. In JP space, there were selling flows on 10yr bank papers, Japanese insurance subs edged 0.1pt firmer, and Yankee AT1s leaked 0.1 - 0.3pt. In the Middle East, BSFRs were 0.1pt lower to 0.1pt higher, and long - end KSAs traded up to 0.4pt higher [2]. - This morning, MEITUA/KUAISH recovered to 3 - 5bps tighter. There was better selling on FRESHKs, FAEACO 12.814 Perp gained 1.6pts higher, EHICAR 26 dropped 2.3pts, and ACPM 4.85 Perp/HYSAN 4.85 Perp were 0.6 - 0.8pt lower. VNKRLE 27' and 29' edged 0.1 - 0.2pt higher after yesterday's jump [3]. - In the LGFV space, there was deployment demand from institutions, lifting offers and driving yields tighter. Non - LGFV CNH papers remained afloat due to cross - border account demand [4]. Last Trading Day's Top Movers | Top Performers | Price | Change | Top Underperformers | Price | Change | | --- | --- | --- | --- | --- | --- | | VNKRLE 3.975 11/09/27 | 43.4 | 8.8 | EHICAR 12 09/26/27 | 53.3 | - 2.1 | | VNKRLE 3 1/2 11/12/29 | 41.5 | 8.0 | VLLPM 7 1/4 07/20/27 | 51.9 | - 1.8 | | TTMTIN 4.35 06/09/26 | 99.4 | 1.9 | NICAU 9 09/30/30 | 103.4 | - 1.2 | | LASUDE 5 07/28/26 | 78.4 | 1.5 | HAOHUA 5 1/2 03/14/48 | 99.9 | - 1.0 | | NWDEVL 10.131 PERP | 80.9 | 0.9 | VLLPM 9 3/8 07/29/29 | 41.5 | - 1.0 | [5] Marco News Recap - On Wednesday, S&P (-0.00%), Dow (-0.13%), and Nasdaq (-0.16%) were lower. The US Jan'26 Nonfarm Payrolls were +130k (higher than the market expectation of +66k), the Unemployment Rate was 4.3% (lower than the forecast of 4.4%), the Average Hourly Earnings in Jan'26 was +0.4% mom (a touch higher than the forecast of +0.3%), and the Crude Oil Inventories was +8.53mn (higher than the market expectation of -0.2mn). UST yield was higher, with 2/5/10/30 - year yield at 3.52%/3.75%/4.18%/4.82% [6]. Desk Analyst Comments - VNKRLE 27' and 29' jumped 8.0 - 8.8pts yesterday and edged 0.1 - 0.2pt higher this morning on the media reports of the SZ government's RMB80bn rescue plan for Vanke, including a RMB20bn share placement. Whether the equity injection is sufficient is under discussion, and the new share issue for a loss - making company needs special regulatory approval. The rescue plan is in line with the view that the central government doesn't want another high - profile default in the property sector. The SZ government, through SZ Metro, has been incentivized to support Vanke's refinancing and maturity extension [7]. - In late Jan'26, Vanke secured consents on onshore bonds. SZ Metro provided a 3 - year loan of up to RMB2.4bn to Vanke. Fitch upgraded China Vanke to CC from RD and affirmed Vanke HK's CC rating [8]. - Vanke can turn to alternative funding channels like long - term operating loans or CBICL - guaranteed bonds secured by IPs. As of Jun'25, the book value of Vanke's IPs was cRMB152bn, and c48% of IPs remained unencumbered, which could secure additional financing of cRMB36bn. The total o/s onshore and offshore bonds of Vanke is cRMB27bn [9][10]. - There are hold recommendations on VNKRLEs. The total outstanding amount of Vanke's USD bonds is USD1.3bn, and the next offshore maturity is VNKRLE 3.975 11/09/27 in Nov'27. Estimated NPVs for VNKRLEs are low - 60 to high - 70 and high - 50 to low - 70, respectively [11]. China Economy - China's deflationary pressure continued to ease in early 2026. CPI slowed to 0.2% YoY in Jan due to a high base effect and volatile food pricing. Core inflation remained robust driven by durable goods, tourism, and jewellery prices. PPI beat market expectation as price relation in upstream sectors passed through, while PPI of consumer goods remained subdued. Mild price reflation is expected in 2026, and CPI and PPI are expected to reflate from 0.1% and - 2.6% in 2025 to 0.9% and 0.5% in 2026. Further demand - side policies are expected to address the imbalance [12]. - Food price dynamics and base effects drove the shift in headline CPI. CPI YoY moderated to 0.2% in Jan from 0.8% in Dec, slightly below the market expectation. Sequentially, CPI remained flat at 0.2% MoM. Food prices showed weaker - than - normal seasonality, pork prices had 1.2% MoM growth, fresh vegetable prices dropped - 4.8% MoM, and vehicle fuel prices declined 1.2% MoM. Headline CPI is expected to rebound to 1.1% in Feb [13]. - Core CPI remained robust as durable goods price reflated. Core inflation edged down to 0.8% YoY in Jan from 1.2% in Dec due to the base effect, while its MoM expanded to 0.3%. Durable goods saw notable price reflation, other supplies and services including gold jewellery surged 2.7% MoM, service price growth edged up to 0.2% MoM, medical services continued reflation, and housing rent dropped 0.1% MoM [14]. - PPI sustained its recovery momentum. The YoY contraction of PPI narrowed to - 1.4% in Jan from - 1.9% in Dec, beating market expectations. The MoM growth reached 0.4%, the highest in 28 months. The extraction sector dropped 1.7% MoM, raw materials and processing sectors rose 0.7% and 0.5% MoM, AI - related and anti - involution sectors saw price increases, while downstream sectors remained subdued [15][16]. Offshore Asia New Issues - There were no offshore Asia new issues priced or in the pipeline today [19][20]. News and Market Color - Yesterday, 72 credit bonds were issued onshore with an amount of RMB50bn. Month - to - date, 858 credit bonds were issued with a total amount of RMB690bn, a 615.7% yoy increase. Sales of New Energy Vehicles (NEVs) in China slumped 18.9% yoy in Jan'26. First Pacific's Meralco will spend USD4.65bn on network upgrades and service expansion. Fosun - owned insurer weighs Lisbon listing at more than USD3.6bn valuation [21]. Company - Specific News - Seazen Group raised HKD472.3mn (cUSD60.4mn) through a private share placement to help repay FTLNHD 4.5 05/02/26 [26]. - Medco Energi Internasional's arm was awarded the operatorship of Cendramas offshore field in Malaysia by Petronas [26]. - Moody's affirmed Meituan's Baa1 ratings and revised outlook to negative from stable due to competition in the food delivery business [26]. - Petron Malaysian unit flagged a potential financial hit due to tropical storm Senyar [26]. - Petronas launched a bidding round for nine exploration blocks across Malaysia [26]. - Samsung Heavy won a USD321mn deal to build two containerships for an African buyer [26]. - AIIB will provide up to USD250mn on - lending facility to Shriram Finance [26]. - Santos flagged a USD137mn impairment loss in 2025 [26]. - West China Cement settled tender offer for WESCHI 4.95 07/08/26, with USD51.976mn remaining outstanding [26].

Core Insights - Cognizant has entered a three-year strategic agreement with DAMAC Group to enhance its IT infrastructure and application services, focusing on operational efficiency and improved digital experiences for customers and employees [1][2]. Company Overview - DAMAC Group is a diversified private conglomerate based in Dubai, with a portfolio that includes property development, data centers, retail, hospitality, capital markets, and logistics [6][7]. - Established in 1982, DAMAC has expanded significantly from its origins in catering and logistics to a global presence across Europe, North America, Asia, and the Middle East [6][7]. Strategic Collaboration - The collaboration aims to support DAMAC's technology transformation by improving service delivery, accelerating digital maturity, and driving measurable business impact through a wide range of IT services [3][4]. - Cognizant will implement automation and operational excellence to enhance business agility and scalability, aligning with DAMAC's long-term strategic vision [3][4]. Industry Context - The Middle East is experiencing a shift towards digital-first business models, increasing the pressure on real estate and infrastructure companies to modernize their systems and meet rising customer expectations [4]. - Cognizant's expertise in data-led decision-making and intelligent automation positions it well to support DAMAC and similar companies in navigating these industry changes [4][5].

Core Viewpoint - Sagtec Global Limited has entered into a project funding agreement with a local property developer for a residential township development consisting of 84 townhouse units, marking a strategic move into smart real estate development [1][2][5]. Project Overview - The project involves the development of 84 townhouse units designed to meet modern residential living standards, expected to benefit from strong demand for landed residential properties due to strategic location planning and modern infrastructure [3]. Financial Commitment - Sagtec has committed approximately RM7.6 million (around US$1.93 million) for project funding, with repayment structured through the transfer of completed residential units or cash settlement based on the sale value of comparable units [2]. AI Smart Home Solutions - Sagtec is expected to provide AI Smart Home solutions for the project, which may include home automation systems, energy management solutions, and security features, pending final agreements [4]. Strategic Rationale - This project is a significant step in Sagtec's strategy to expand its technology solutions into the real estate sector, aiming to create sustainable revenue streams and demonstrate the application of its AI Smart Home ecosystem [5]. Financial Impact - The project is anticipated to positively contribute to Sagtec's future earnings through returns from the funding arrangement and potential additional revenue from AI Smart Home solutions [6]. Revenue Recognition - Revenue and profit contributions from the project will be recognized progressively in accordance with applicable accounting standards as the project is undertaken in phases [7]. Outlook - Sagtec is committed to pursuing strategic collaborations that align with its long-term growth objectives, exploring opportunities that integrate technology innovation with high-growth sectors like property development and smart cities [8]. Value Proposition - The integration of AI Smart Home solutions is expected to enhance the value proposition of the residential units, improve energy efficiency and security, differentiate the project in a competitive market, and strengthen Sagtec's position in the real estate sector [10].

Report Summary 1. Report Industry Investment Rating - Not provided in the given content. 2. Core Viewpoints - The Macau gaming industry showed a solid start in 2026 with a 24% year-on-year growth in January's GGR, reaching 90.7% of the January 2019 level. The 2026 GGR target of MOP236bn seems conservative based on the 2025 growth momentum [7][10][11]. - In the fixed - income market, there were various price movements across different sectors such as Chinese/HK higher - yielding space, Chinese properties, SE Asian space, etc. Some bonds tightened while others widened or declined in price [2]. - Chinese IG KUAISH/MEITUA recovered and tightened 1 - 3bps in the morning [3]. 3. Summary by Directory Trading Desk Comments - In the FRN space, there were balanced two - way flows across AU/JP financial names, MAYMK, 2 - 3yr Korean quasi - sovereign issues, and HYNMTR, with the latter closing 1 - 2bps tighter. Front - end to belly Chinese AMC papers, POE/TMTs, and belly financial papers saw initial selling, widening spreads by 1 - 3bps, but spreads largely closed unchanged. TW lifers widened 3 - 5bps, and the Macau gaming complex had a range of - 0.2pt to + 0.1pt change. In Chinese/HK higher - yielding space, WESCHI 26 rose 1.4pts and WESCHI 28 edged 0.2pt higher, while EHICAR 26 - 27 dropped 0.7 - 2.3pts. In Chinese properties, VNKRLE 27 - 29 were 0.9 - 1.7pts lower. In SE Asian space, VLLPM 27 - 29 dived 7.6 - 9.6pts [2]. - In the morning, Chinese IG KUAISH/MEITUA recovered and tightened 1 - 3bps. RMs were buying perps, and PBs were switching out of short - dated to call EU AT1s. ACPM 4.85 Perp/FAEACO 12.814 Perp were 0.7 - 0.9pt lower, and NWDEVL 27 - 28 recovered 0.5 - 0.6pt [3]. Macro News Recap - On Monday, S&P (+0.54%), Dow (+1.05%), and Nasdaq (+0.56%) were higher. The S&P Global Manufacturing January 2026 PMI was 52.4 (higher than the expected 51.9), ISM Manufacturing January 2026 Prices was 59.0 (lower than the expected 59.3), and ISM Manufacturing January 2026 PMI was 52.6 (higher than the expected 48.5). The UST yield was higher, with 2/5/10/30 - year yields at 3.57%/3.83%/4.29%/4.90% [6]. Desk Analyst Comments - Macau's gross gaming revenue (GGR) in January 2026 increased 24.0% year - on - year to MOP22.6bn, representing 90.7% of the January 2019 GGR and being the highest January figure since 2019. The 2026 GGR target of MOP236bn seems conservative as GGR in 2025 increased 9.1% to MOP247.4bn, exceeding the revised forecast of MOP228bn. The 2026 forecast represents a 3.5% year - on - year growth from the 2025 revised GGR forecast. In 2025, Macau's tourist arrival was 40.1mn, a 15% year - on - year increase and exceeding the 2019 record [7][10][11]. - Macau gaming bonds are considered lower - beta and good carry plays. Top picks are MPELs and STCITYs, and WYNMAC'27 and '29 are yield pick - up plays. The report is neutral on MGMCHIs, SANLTDs, and SJMHOLs [13]. Offshore Asia New Issues - Priced: CMBC International Funding (HK) issued USD300mn with a 3 - year tenor at SOFR + 60, rated - / - /BBB - [17]. - Pipeline: No offshore Asia new issues pipeline on this day [18]. News and Market Color - There were 89 credit bonds issued onshore yesterday with an amount of RMB88bn. No credit bonds were issued on 2 Feb 2025 due to the Chinese New Year holiday. Trump said he would roll back 25% punitive tariffs and cut the levy on Indian goods to 18% from 25% in return for India stopping buying Russian oil. China's local government debt increased 15% in 2025 and remains manageable. Indonesia's coal exports declined 19.7% last year to USD24.5bn due to falling global prices. Huatai Securities raised USD698.6mn by selling HKD and RMB - denominated guaranteed bonds due 2028. UPL Limited 9MFY26 EBITDA rose 22% year - on - year to INR59.1bn (cUSD648mn) [19][20].

1. Report Industry Investment Rating - No specific industry investment rating is provided in the report 2. Core Viewpoints - The report analyzes the fixed - income market, including bond price movements, new issuances, and macro - economic factors. It also provides insights into the China economy based on PMI data and anticipates policy stimulus and GDP growth trends [2][3][13] - West China Cement's tender offer and new bond issuance are considered to lower its near - term refinancing risk, and the report maintains a buy rating on WESCHI 9.9 12/04/28 [7][8] 3. Summary by Relevant Catalogs Trading Desk Comments - Last Friday, financial FRNs traded 1bp wider. In HK, NWDEVL/VDNWDL complex surged 0.5 - 3.0pts. FAEACO 12.814 Perp rose 1.5pts. SHUION 26 - 29 edged 0.2 - 0.6pt higher. SUNHKC 26 was 0.1pt lower and SUNHKC 29 was 0.3pt higher. TW lifers were 2 - 4bps wider. Long - end MEITUA/KUAISH widened 2 - 3bps. EHICAR 26 was down by 0.6pt. WESCHI 26 - 28 were 0.1pt higher. In Chinese properties, VNKRLEs rose 1.8 - 2.7pts. FUTLAN 28 edged 1.1pts higher. LNGFOR 27 - 32 were 0.2pt lower to 0.2pt higher. In SE Asian space, OCBCSP/UOBSP traded 1 - 2bps wider. IHFLIN 27 - 30/TOPTB 6.1 Perp were unchanged to 0.1pt lower. VLLPM 27 - 29 rose 1.0 - 1.3pts. GLPSP Perps were up by 0.5 - 0.9pt. JP insurance subs like RESLIF 6.875 Perp leaked by 0.1pt. NTT 35/MUFG35 - 36 were 1 - 3bps wider. Yankee AT1s were 0.3pt weaker. In the Middle East, ARAMCO 30 - 56s/SECO 29 - 36s widened 1 - 4bps. Long - end KSAs were down 0.1 - 0.5pt. LGFV space was stable [2] - This morning, HYNMTR FRNs were 1 - 2bps tighter. KUAISH slightly recovered to 1bp tighter. ZHOSHK 28 spread was unchanged. FAEACO 12.814 Perp/VNKRLE 27 were 1.0 - 1.2pts lower. NDPAPE 14 Perp was 0.3pt higher. WESCHI 26 - 28 were 0.4 - 1.0pt higher [3] Marco News Recap - Last Friday, S&P (- 0.43%), Dow (- 0.36%) and Nasdaq (- 0.94%) were lower. Trump nominated Kevin Warsh to lead Federal Reserve. US Dec'25 PPI was +0.5% mom, higher than the market expectation of +0.2%. 2/5 - year UST yield was higher while 10/30 - year UST yield was lower. 2/5/10/30 - year yield was at 3.52%/3.79%/4.26%/4.87% [6] Desk Analyst Comments - West China Cement (Weschi) launched a tender offer for its USD200mn WESCHI 4.95 07/08/26 at a tender price of 101.238, equivalent to the bond's call price. The offer expires on 6 Feb'26 5pm CET. Weschi plans to redeem WESCHI 26 in full on 6 Mar'26 at 101.238 [7] - Concurrently, Weschi will issue USD300mn WESCHI 10.5 11/11/29 (-/B/B). Net proceeds will be used to refinance existing debts, including funding the tender offer and early redemption for WESCHI 4.95 07/08/26. The report maintains a buy on WESCHI 9.9 12/04/28 for its good carry, with WESCHI 28 trading at YTM of 9.8% at 100.3, up c2pts YTD. Weschi's earnings improved in 1H25, and near - term refinancing risk is viewed as lower [8] China Economy - China's manufacturing PMI retreated in January after a December rebound. Demand softened as new orders slipped back into contraction and export orders weakened again. Deflation pressure continued to ease, with raw material purchase and ex - factory prices both expanding, indicating PPI may return to positive sooner. Service PMI remained in contraction while construction PMI fell back, signaling pressure to stabilize fixed asset investment. Policy stimulus around CNY is expected, including stabilizing the property market and stimulating consumption. A 50bp cut in RRR and a 10bp cut in LPR in 1Q26 are expected, followed by an additional 10bp LPR cut in 3Q26. The broad fiscal deficit should remain almost flat at 8.5% in 2026, and the full - year GDP growth rate may decline from 5% in 2025 to 4.6% in 2026 [12][13] - Manufacturing PMI fell to 49.3% in January from 50.1% in December, with new order index declining to 49.2% from 50.8% and new export orders falling to 47.8% from 49.0%. Production eased but stayed in expansion at 50.6% in Jan. Deflation pressure continued to ease as raw material purchase prices stayed elevated and ex - factory prices improved. Import demand stayed weak, and inventory indicators remained subdued [14] - Non - manufacturing PMI softened in January. Service PMI edged down to 49.5% from 49.7%, with activity expectations improving. Service selling prices improved, while employment remained subdued. Construction fell to 48.8% in January, with new orders weakening and business expectations easing, indicating pressure on fixed asset investment [15] Offshore Asia New Issues Priced | Issuer/Guarantor | Size (USD mn) | Tenor | Coupon | Priced | Issue Rating (M/S/F) | | --- | --- | --- | --- | --- | --- | | ADM Elektrik | 500 | 5NC2 | 9.5% | 9.5% | B2/-/BB | | Tsetsen Mining and Energy | 300 | 5yr | 11.375% | 11.5% | Unrated | | West China Cement | 300 | 3.75yr | 10.5% | 10.5% | -/B/B | [18] Pipeline | Issuer/Guarantor | Currency | Size (USD mn) | Tenor | Pricing | Issue Rating (M/S/F) | | --- | --- | --- | --- | --- | --- | | CMBC International Funding (HK) | USD | - | 3yr | SOFR + 115 | -/-/BBB | | New Development Bank | USD | - | 3yr | SOFR MS + 55 | Unrated | [19] News and Market Color - Last Friday, 81 credit bonds were issued onshore with an amount of RMB45bn. In Jan'26, 1,999 credit bonds were issued with a total amount of RMB1,691bn, a 16.2% yoy increase [20] - China is considering selling special government bonds of RMB200bn (cUSD29bn) to recapitalize some insurers and injecting RMB300bn into ICBC and ABC [20] - Macau gaming revenue for Jan'26 rose 24% yoy to MOP22.6bn (cUSD2.8bn) [20] - Indonesia is reforming its equity markets after the Jakarta Composite Index plunged by up to 16.5% [20] - Adani Green's directors plan to seek dismissal in US SEC lawsuit [20] - Azure Power Energy delayed the planned early redemption of AZUPOE 3.575 08/19/26 of USD294.184mn to 13 Feb'26 from 5 Feb'26 [20] - Panama's top court ruled that CK Hutchison's port - operating contract is unconstitutional [20] - China Overseas Grand Oceans priced a 3yr dim sum bond at 3.2%, tightened from IPT at 3.75%, issue size RMB1.3bn [20] - Dalian Wanda announced to redeem USD50mn of DALWAN 11 02/13/28, and the maximum acceptance amount of the tender offer is USD350mn [20] - Muthoot Finance plans to raise USD600mn under the global medium - term note program [20] - Nomura Holdings 9MFY26 net revenue rose 10.5% yoy to JPY1.6tn (cUSD10.4bn) [20] - CTFE is in discussions with potential investors regarding potential investments in NWD, but no agreement has been reached [20] - Vedanta Ltd.'s demerge plan will be effective on 1 Apr'26, and it expects to list four demerged units by mid - May'26 [20] - China Vanke expects its loss attributable to shareholders to widen sharply in FY25 to RMB82bn (cUSD11.8bn) [27] - Yuexiu Property priced a 3yr dim sum bond at 3.4%, tightened from IPT at 3.85%, issue size RMB1.735bn [27]

Market Overview - Asian stocks declined, following Wall Street's downward trend, due to ongoing trade tensions, uncertainty over U.S. monetary policy, and heavy selling in precious metals [1] - Precious metals, including gold and silver, saw significant declines, with gold dropping over 5% and silver nearly 8% [2] - Oil prices fell nearly 5% amid reports of U.S. and Iran readiness to negotiate an agreement to ease tensions [2] Chinese Market - Chinese and Hong Kong markets experienced sharp declines, with China Vanke warning of an 11.8 billion net loss for 2025 and BYD reporting a 30.1% year-on-year drop in vehicle sales for January [3] - The Shanghai Composite index fell 2.48% to 4,015.75, while the Hang Seng index dropped 2.23% to 26,775.57 [3] - Both China Vanke and BYD shares fell more than 4% in Shanghai [3] Economic Data - China's official manufacturing purchasing managers' index (PMI) was reported at 49.3, below forecasts, indicating contraction, while the non-manufacturing PMI also fell into contraction [4] - A private gauge indicated that Chinese manufacturing activity continued to expand in January [4] Japanese Market - The Nikkei average decreased by 1.25% to 52,655.18, reversing early gains, while the broader Topix index settled 0.85% lower at 3,536.13 [5] - Major companies like SoftBank Group, Advantest, Disco Corp, and Lasertec saw declines ranging from 3.8% to 14% [5] - Investors overlooked a private-sector survey indicating Japan's manufacturing activity grew at the fastest pace in about three and a half years [6] South Korean Market - The Kospi average plunged 5.26% to 4,949.67, ending a four-session winning streak, with major companies like Hyundai Motor and Samsung Electronics falling between 4% and 9% [7] - The Korea Exchange issued a sell-side circuit breaker for 5 minutes during the trading session [7] Australian and New Zealand Markets - Australian markets closed lower, with the S&P/ASX 200 falling 1.02% to 8,778.60, driven down by financials and materials amid rate hike concerns [7] - New Zealand's S&P/NZX-50 index finished marginally lower at 13,412.44 [8] U.S. Market Influence - U.S. stocks ended lower, with the dollar index climbing and Treasury yields surging after President Trump nominated Kevin Warsh for Fed Chair, leading to a hawkish shift in U.S. monetary policy [8][9] - Warsh is perceived as skeptical of loose monetary policy and has previously criticized the Fed for underestimating inflation risks [9]

Summary of Key Points from the Conference Call on China Property Industry Industry Overview - The China property industry has shown an 11% year-to-date performance, outperforming the MSCI China index which is at 7% [1] - The current sentiment-driven rally is viewed as likely unsustainable due to a fragile housing market and high sector valuations [1] Core Insights - The rally is attributed to improved investor sentiment from positive policy news and a recent uptick in housing sales, influenced by a later Chinese New Year and mild policy easing [9] - However, there are multiple near-term headwinds anticipated, including: - Over-optimism regarding the physical market recovery [3] - Potential earnings misses for key developers in 2025, with profit warnings expected from Greentown, Longfor, and Vanke [4] - A decline in contracted sales in Q1 due to reduced saleable resources and a high base effect [4] - High valuations across the sector [4] Company-Specific Insights - Companies expected to face challenges include: - **Greentown**, **Jinmao**, **Longfor**, and **Vanke A/H** due to potential earnings misses and high valuations [4] - In contrast, companies favored for their fundamentals include: - **CR Land** and **Seazen A/H**, which are robust mall operators benefiting from consumption-boosting initiatives [5] - **C&D**, recognized as residential market consolidators with optimized landbanks supporting margins and positive earnings growth [5] Market Outlook - A potential sector pullback is anticipated as the results season approaches, with cautious guidance expected from developers regarding property sales, development margins, and earnings recovery [9] - The likelihood of further policy stimulus is seen as diminishing, especially before the Chinese New Year, given the recent improvement in home sales volume in tier 1 cities [9] - Analysts maintain a cautious outlook, predicting continued home price declines in top-tier cities over the next two years [9] Stock Ratings and Price Targets - The report includes a summary of stock ratings and price targets for various companies in the sector: - **C&D International** (OW, PT: HKD 20.62) - **CR Land** (OW, PT: HKD 39.20) - **Seazen A** (OW, PT: RMB 19.70) - **Greentown** (UW, PT: HKD 7.86) - **Vanke A** (UW, PT: RMB 2.70) [6] Additional Considerations - The report emphasizes the importance of considering the broader market context and potential conflicts of interest in investment decisions [7][8] - Analysts express skepticism about the sustainability of fund flows into the sector, given the bearish outlook for the China housing market [9] This summary encapsulates the key insights and outlook for the China property industry as discussed in the conference call, highlighting both risks and opportunities within the sector.

1. Report Industry Investment Rating - No information provided regarding the report industry investment rating 2. Core Viewpoints - The Asian IG space tightened by 2 - 3bps this morning, while some bonds like KUAISH 31 - 36s and SKBTAM 29 were 1 - 2bps wider [3] - The IPT of new SHUION 29 at 10.625% is considered fair, and the proposed new issue and tender offer by Shui On Land should lengthen its maturity profile and reduce near - term refinancing pressure [7][9] - In the Chinese properties space, CHJMAO, DALWAN, FUTLAN/FTLNHD, GRNCH, and LNGFOR are favored [9] 3. Summary by Relevant Catalogs Trading Desk Comments - Last Friday, the new SNBAB 6.15 Perp was down 0.4pt from RO at par; KUAISH 31 - 36s opened heavy and initially widened 3 - 5bps, with the 5yr tranche closing at RO level and the 10yr tranche 4bps wider [2] - MEITUA curve traded softly, widening 1 - 2bps, while FRESHK curve outperformed and tightened 5 - 8bps; TW lifers were 1 - 2bps wider [2] - SHUION launched a tender offer for USD400mn SHUION 26 and circulated 10.625% IPT for a new USD bond; NWDEVL/VDNWDL complex was up 0.2 - 1.0pt; FAEACO 12.814 Perp/LASUDE 26 gained 0.5 - 0.6pt [2] - EHICAR 26 - 27 increased by 0.4 - 0.5pt; DALWAN 28 was 0.2pt lower; VNKRLE 27 - 29 rose 2.4 - 2.5pts; LNGFOR 27 - 32 increased by 0.4 - 0.8pt [2] - In the Korean space, KDB 27 - 31s and EIBKOR 29 FRNs tightened 1 - 2bps; AU and JP IG credits closed 1 - 4bps tighter; in the Middle East, there was block - size trading on FABUH 34s and PBs were buying FABUH FRNs; in SE Asia, BBLTB sub - curve was 2 - 5bps tighter; GLPSP Perps rose 1.8pts [2] - IHFLIN 27 - 30s/VEDLN 28 - 33s edged 0.2 - 0.8pt higher; MEDCIJ 26 - 30s and the ReNew Energy complex were unchanged to 0.4pt higher [2] Morning Market Update (19 Jan 2026) - Asian IG space was 2 - 3bps tighter this morning, KUAISH 31 - 36s and SKBTAM 29 were 1 - 2bps wider; SOFTBK 65/EHICAR 26 were down 0.6 - 0.7pt; PMBROV 30 edged 0.6pt higher [3] - SHUION 26 was 2.2pts higher this morning; the IPT of new SHUION 29 at 10.625% is fair [3][7] - China Oil and Gas launched a tender offer for CHIOIL 4.7 06/30/26 of USD361mn at par and mandated concurrent USD bond issuance, with the offer expiring on 26 Jan '26 4pm GMT, and the bond was unchanged this morning [3] Top Performers and Underperformers - Top performers include VNKRLE 3.975 11/09/27 (up 2.5), VNKRLE 3 1/2 11/12/29 (up 2.4), ADSEZ 5 08/02/41 (up 2.0), GLPSP 4 1/2 PERP (up 1.8), COGARD 5 12/31/32 (up 1.8) [4] - Top underperformers include TENCNT 3.29 06/03/60 (down 0.8), CNPCCH 5.95 04/28/41 (down 0.7), HAOHUA 3.7 09/22/50 (down 0.7), APAAU 5 3/4 09/16/44 (down 0.7), SINOPE 3.68 08/08/49 (down 0.7) [4] Macro News Recap - Last Friday, S&P was down 0.06%, Dow was down 0.17%, and Nasdaq was down 0.06%. UST yield was higher, with 2/5/10/30 - year yields at 3.59%/3.82%/4.24%/4.83% [6] Desk Analyst Comments on SHUION - Shui On Land proposes to issue a 3NC1.5 Reg S USD senior unsecured bond (unrated) guaranteed by SOL, and the IPT of new SHUION 29 at 10.625% is fair considering peer valuation and tenor differential [7] - The net proceeds of the new bond will fund the tender offer for SHUION 5.5 06/29/26 of USD400mn, with a tender price of 100.25. SOL may prioritize holders subscribing to the new bond, and tender settlement is conditional on new bond issuance [8] - Despite sector headwinds, SOL honors offshore obligations, having redeemed two USD bonds totaling USD990mn since Aug '24. The new issue and tender offer should lengthen maturity and reduce refinancing pressure. The analyst is neutral on SHUION 5.5 06/29/26 [9] Offshore Asia New Issues - No offshore Asia new issues were priced today [13] - Shui On Land has a pipeline to issue a USD bond with a 3NC1.5 tenor, 10.625% coupon, and unrated [14] News and Market Color - On last Friday, 89 credit bonds were issued onshore with an amount of RMB63bn. Month - to - date, 948 credit bonds were issued with a total of RMB755bn raised, a 29.3% yoy decrease [17] - Fitch upgraded DWCM and Wanda Commercial Properties (Hong Kong) to CC from RD [17] - Media reported eHi Car plans a LME in 1H26 for EHICAR 7 09/21/26 of USD269mn and seeks RMB300 - 500mn syndicated loans [17] - ReNew Energy Global to hold investor meetings/calls to market USD 144A/Reg S bonds [17] - Sands Macao launched 'Pearl Gaming Room' targeting mass - market bet sizes [17] - Media reported Vanke reassured bondholders it can make 40% upfront payment for domestic bonds [17]