China / HK Blue-Chip IG
A-/A3+ China and Hong Kong issuers with large benchmark issues.
This theme brings together Arange China and Hong Kong issuers with large, liquid USD benchmark bonds. It offers highquality credit with a meaningful yield pickup over comparable developedmarket names. Longdated financials lead the relative value case. CHIOLI's 6.375% 2043s yield 6.523%, PRUFIN's 6.875% 2036s yield 6.493%, and AIA's 5.4% 2054s yield 6.469% at a discount price of 86.27, adding duration with an attractive carry. Tencent (TENCNT) provides A+ rated communications exposure at similar yields. Its 6.75% 2046s yield 6.301% and its 3.94% 2061s yield 6.291%, so investors can pick up the same level of yield across different maturities and credit profiles. The yields on the shortestdated SFHOLD and GDCOMM prints look anomalous, so verify those quotes before relying on them.
| # | Issuer | ISIN | Coupon | YTW | Price | Maturity | Next Call | Rating | CUR | AMT OUT |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | SF Holding Investment 2021 Ltd. | …3011 | 2.375 | 17.847 | 99.69625 | 2026-11-17 | A- | USD | 800MM | |
| 2 | Xin Yue Co Ltd. | …2685 | 2.358 | 8.381 | 98.755 | 2027-01-25 | Inv Grade 3 | USD | 500MM | |
| 3 | China Overseas Finance (Cayman) II Ltd. | …7881 | 6.375 | 6.523 | 98.4899375 | 2043-10-29 | A- | USD | 500MM | |
| 4 | Prudential Funding Asia PLC | …0514 | 6.875 | 6.493 | 102.727 | 2036-11-03 | 2036-08-03 | A- | USD | 850MM |
| 5 | AIA Group Ltd, Hong Kong | …AS26 | 5.4 | 6.469 | 86.2655749 | 2054-09-30 | 2054-03-30 | A | USD | 750MM |
| 6 | China Construction Bank Corporation, Hong Kong Branch | …1208 | 4.3201 | 6.358 | 99.7995 | 2029-06-15 | Inv Grade 3 | USD | 500MM | |
| 7 | AIA Group Ltd, Hong Kong | …AK99 | 3.2 | 6.333 | 71.3835714 | 2040-09-16 | 2040-03-16 | A+ | USD | 1.75BN |
| 8 | AIA Group Ltd, Hong Kong | …AK17 | 3.2 | 6.322 | 71.465875 | 2040-09-16 | 2040-03-16 | A+ | USD | 1.75BN |
| 9 | Tencent Holdings Ltd. | …BH88 | 6.75 | 6.301 | 104.994679 | 2046-10-21 | 2046-04-21 | A+ | USD | 500MM |
| 10 | Tencent Holdings Ltd. | …BD57 | 3.94 | 6.291 | 67.0470968 | 2061-04-22 | 2060-10-22 | A+ | USD | 1BN |
Results are limited to USD bonds with an amount outstanding of at least USD 200MM.