Hong Kong, China’s merchandise exports and imports grew 0.8% year-on-year (y-o-y) and 2.8% y-o-y, respectively, in August, with the merchandise trade deficit reaching HKD32.1 billion for the

To read the full report, data and graphs go to http://asianbondsonline.adb.org/newsletters/abowdh20161003.pdf?src=newsletter&id=uWidK3KdmgXVUWes9IgIcqKp1miwxx

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News Highlights - Week of 26 - 30 September 2016

Hong Kong, China’s merchandise exports and imports grew 0.8% year-on-year (y-o-y) and 2.8% y-o-y, respectively, in August, with the merchandise trade deficit reaching HKD32.1 billion for the month. Thailand’s exports of goods rose 2.7% y-o-y and imports slipped 0.1% y-o-y in August, while its current account surplus expanded to USD3.8 billion in August from USD3.6 billion in July. In Viet Nam, export growth and import growth for January–September stood at 6.7% y-o-y and 1.3% y-o-y, respectively.

*     Viet Nam’s real gross domestic product growth reached 5.9% y-o-y in the first 3 quarters of the year, buoyed by the industrial, construction, and services sectors. 

*     Japan’s Consumer Price Index fell 0.5% y-o-y in August, the fifth consecutive month of decline.

*     Industrial production in Japan increased 1.5% month-on-month (m-o-m) in August after a decline of 0.4% m-o-m in July. In the Republic of Korea, industrial production expanded 2.3% y-o-y but contracted 2.4% m-o-m in August. Manufacturing production in Singapore inched up 0.1% y-o-y in August after a 3.5% y-o-y contraction in July. In Viet Nam, industrial production growth climbed to 7.6% y-o-y in September from 7.3% y-o-y in August. 

*     ICBC Financial Leasing, which is based in the People’s Republic of China (RPC), raised USD1.4 billion from a dual-tranche bond sale— a USD700 million 3-year bond at a 2.125% coupon and a USD700 million 5-year bond with a 2.5% coupon—last week.

*     China National Bluestar (Group), a PRC-based chemical company, raised USD1.1 billion from a dual-tranche bond sale last week. The transaction comprised a USD500 million 3-year bond at a 3.125% coupon and a USD600 million 5-year bond with a 3.5% coupon. 

*     Shui On Development (Holding), a property developer in the PRC, priced a USD250 million 3-year bond at a 4.375% coupon, while HNA Group, a PRC-based conglomerate, priced a USD200 million 5-year bond with a 6.25% coupon last week.

*     CK Hutchison, a conglomerate listed in Hong Kong, China, raised USD1.25 billion from a dual-tranche bond sale last week. The sale comprised a USD750 million 5-year bond carrying a coupon of 1.875% and a USD500 million 10-year bond offering a 2.75% coupon. New World Development, a property developer listed in Hong Kong, China, priced a USD1.2 billion perpetual bond with a 5.75% coupon last week. The bond is callable in 5 years.

*     RHB Bank, which is based in Malaysia, priced a USD500 million 5-year bond with a 2.503% coupon last week. Thailand-based Kasikorn Bank priced a USD400 million 5.5-year bond with a 2.375% coupon last week. 

*     On 29 September, the Indonesian government began offering its 13th series of retail bonds, which carry a maturity of 3 years and a coupon rate of 6.6%. The target bond sale amount is IDR20 trillion.

*     Local currency government bond yields fell for all tenors in the Republic of Korea and Viet Nam, and for most maturities in Malaysia and Thailand last week. Yields rose for all tenors in Indonesia and for most maturities in the Philippines and Singapore. Yield movements were mixed in the PRC and Hong Kong, China last week. Yield spreads between 2- and 10-year tenors widened in Hong Kong, China; Indonesia; and the Philippines, while spreads narrowed in most other emerging East Asian markets.

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