Bond Market News

Dollar bonds of Chinese developers Longfor and Country Garden rallied by over 3-5% yesterday. While there was no specific news to attribute to the rally, their bonds have been trending higher over the last week. Besides, GLP China, an IG rated (BBB-) Chinese logistics company saw its dollar bonds also move higher by over 3%. GLP applied to list a HKD 20bn ($2.6bn) MTN program with the HKEX with the listing effective Tuesday. However, it did not disclose any detail on specific debt issuance plans in the filing. A spokesperson said, “The company wishes to clarify that we are not initiating a new debt program at this time”.

All three companies’ dollar bonds have been trending lower in May due to renewed concerns about the state of the Chinese property market. GLP’s dollar bonds are down over 20% YTD which Bloomberg notes is the biggest drop in its index of Asian IG-bonds. Longfor’s 3.375% 2027s were up 3.8 points to 77.1, yielding 10.8%, COGARD’s 5.625% 2026s were up 1.7 points to 36.1 and GLP’s 3.875% 2025s jumped by 6 points to 68.5.