China / HK Blue-Chip IG
A-/A3+ China and Hong Kong issuers with large benchmark issues.
Chinese and Hong Kong bluechip issuers offer Arange credit quality alongside large, liquid USD benchmark curves, a combination that is hard to find elsewhere in Asian credit. The theme's ratings span A to A+, and most of its bonds yield roughly 6.3% to 6.5%. Tencent's 5.6% 2046s (6.38% YTW) and 6.75% 2046s (6.384%) give longdated exposure to a dominant Chinese internet franchise at yields close to the rest of the list. AIA's 3.2% 2040s (6.349%) and Prudential's 6.875% 2036s (6.398%) add insurancesector spread with similar ratings and yields. Longdated Alibaba paper stands out on price: the 3.25% 2061s trade at 56.4 for a 6.403% yield, and the 4.4% 2057s at 73.3 for 6.384%. Investors who want convexity and pulltopar upside can find it here, though duration risk is substantial.
| # | Issuer | ISIN | Coupon | YTW | Price | Maturity | Next Call | Rating | CUR | AMT OUT |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Amipeace Ltd. | …5006 | 1.75 | 13.562 | 99.8676667 | 2026-11-09 | Inv Grade 3 | USD | 600MM | |
| 2 | AIA Group Ltd, Hong Kong | …AS26 | 5.4 | 6.5 | 85.9091231 | 2054-09-30 | 2054-03-30 | A | USD | 750MM |
| 3 | China Overseas Finance (Cayman) II Ltd. | …7881 | 6.375 | 6.44 | 99.3320556 | 2043-10-29 | A- | USD | 500MM | |
| 4 | Alibaba Group Holding Ltd. | …BA99 | 3.25 | 6.403 | 56.4389932 | 2061-02-09 | 2060-08-09 | A+ | USD | 1BN |
| 5 | Prudential Funding Asia PLC | …0514 | 6.875 | 6.398 | 103.4235 | 2036-11-03 | 2036-08-03 | A- | USD | 850MM |
| 6 | Tencent Holdings Ltd. | …BD57 | 3.94 | 6.385 | 66.1001413 | 2061-04-22 | 2060-10-22 | A+ | USD | 1BN |
| 7 | Alibaba Group Holding Ltd. | …AW29 | 4.4 | 6.384 | 73.3222158 | 2057-12-06 | 2057-06-06 | A+ | USD | 1BN |
| 8 | Tencent Holdings Ltd. | …BH88 | 6.75 | 6.384 | 104.0445 | 2046-10-21 | 2046-04-21 | A+ | USD | 500MM |
| 9 | Tencent Holdings Ltd. | …BF06 | 5.6 | 6.38 | 91.3362983 | 2046-06-16 | 2045-12-16 | A+ | USD | 700MM |
| 10 | AIA Group Ltd, Hong Kong | …AK99 | 3.2 | 6.349 | 71.2520865 | 2040-09-16 | 2040-03-16 | A+ | USD | 1.75BN |
Results are limited to USD bonds with an amount outstanding of at least USD 200MM.