BOCI FIXED INCOME WEEKLY U 中银国际定息收益市场周报

1 BOCI FIXED INCOME WEEKLY Update Page 1 of 9 Asian new issue market saw 11 new G3 currency bond being issued for a total supply of billion. The CNH bond market saw no new issuances. 11 G3 In the USD currency space : Out of China/Hong Kong / : China National Bluestar Group (Baa2/BBB/A-) as a first-tier core subsidiary of China National Chemical Corporation Limited ( ChemChina ) which is under central SASAC s direct governance, priced USD300 million perpetual non-call 3-year senior notes, reoffered at , yielding The notes are expected to be rated Baa2 by Moody s and BBB+ by Fitch. (Baa2/BBB/A-) 3 3 Baa2 BBB+ Evergrande Real Estate Group (B1/B+/B+) came to market with tri-tranche senior notes offering for a total issue size of billion.

2 The 2-year tranche was priced as USD565 million notes, reoffered at par, yielding The 4-year non-call 2-year tranche was priced as USD645 million notes, reoffered at par, yielding The 5-year non-call 3-year tranche was priced as USD590 million notes, reoffered at par, yielding The notes are expected to be rated B2 by Moody s, B by S&P and B+ by Fitch. (B1/B+/B+) 18 2 4 2 5 3 B2 B B+ Agricultural Development Bank of China Hong Kong Branch (A1/NR/NR) came to the market with dual-tranche senior notes with total issue size of USD800 million. The 3-year FRN tranche was priced as 3mL+74bps USD500 million notes, reoffered at par. The 5-year FRN tranche was priced as 3mL+85bps USD300 million notes, reoffered at par. The notes are expected to be rated A1 by Moody s.

3 (A1/ / ) 8 3 3mL+74 5 100% 5 3mL+85 3 100% A1 China CITIC Bank International Limited (A3/NR/BBB) priced a USD500 million perpetual non-call 5-year Basel-III Compliant Non-Cumulative Subordinated Additional Tier 1 Capital Securities, reoffered at par, yielding at a spread of T+ The notes are expected to be rated Ba2 by Moody s. (A3/ /BBB) 5 5 III 100% T+ Ba2 RECENT NEW ISSUES COMMENTARY BOCI FIXED INCOME WEEKLY UPDATE Week Ending November 2, 2018 BOCI FIXED INCOME WEEKLY Update Page 2 of 9 AVIC International Leasing (NR/NR/A-) priced USD350 million 3-year senior notes, reoffered at , yielding at a spread of T+175bps. ( / /A-) 3 T+175 Taizhou Infrastructure Construction Investment Group (NR/NR/BBB-) priced USD300 million 3-year senior notes, reoffered at par, yielding ( / /BBB-) 3 3 Changchun Urban Development & Investment (Baa1/NR/BBB) priced USD400 million 3-year senior notes, reoffered at par, yielding (Baa1/ /BBB) 4 3 Shandong Guohui Investment (NR/NR/NR) priced USD600 million 363-day senior notes, reoffered at par, yielding ( / / ) 6 363 Out of Korea : Shinhan Bank (Aa3/A+/A) priced USD500 million 5-year senior notes, reofferd at yielding at a spred of T+105bps.

4 The issue is expected to be rated Aa3 by Moody s and A+ by S&P. (Aa3/A+/A) 5 5 T+105 Aa3 A+ Mirae Asset Daewoo (Baa2/NR/NR) priced USD300 million 3-year senior notes, reofferd at yielding at a spred of T+135bps. Mirae Asset Daewoo (Baa2/ / ) 3 3 T+135 Out of Indonesia : PT Pertamina (Baa2/BBB-/BBB) priced USD750 million 30-year senior notes, reoffered at , yielding PT Pertamina (Baa2/BBB-/BBB) 30 RECENT NEW ISSUES COMMENTARY BOCI FIXED INCOME WEEKLY Update Page 3 of 9 SECONDARY MARKET UPDATE US Market: Stocks recorded solid gains for the week, helping the market regain ground lost over a period of prolonged weakness and bringing most of the major indexes back into positive territory for the year to date. DJIA and S&P 500 changed from 24,443 and 2,641 on Monday to 25,271 and 2,723 on Friday respectively.

5 : 500 24,443 2,641 25,271 2,723 US Treasuries: The strong jobs data helped push up longer-term bond yields. The US Treasury yield curve shifts up with 2-year notes yield closing at on Friday, up from Monday s , the 5-year notes yield closing at on Friday, up from Monday s , the 10-year notes yield closing at on Friday, up from Monday s 2 5 .921% 10 In Asia credit, ITRAXX Asia Ex-Japan IG opened the week at 91/93bps on Monday and tightened 3/4bps to 88/89bps on Friday. ITRAXX 91/93 3/4 88/89 The IG space ended mixed: IG Bonds Tenor (year) ( ) Coupon Spread (Bid/Ask) Monday ( / ) Spread (Bid/Ask) Friday ( / ) Diff bps CHGRID 2022 (A1/AA-) 5 85/79 84/78 -1/-1 CHGRID 2027 (A1/AA-) 10 122/118 119/115 -3/-3 CHCONS 2022 (A2/A) 5 112/106 113/106 +1/0 CHCONS 2027 (A2/A) 10 161/154 161/154 0/0 CITLTD 2023 (A3/BBB+) 5 144/138 144/138 0/0 CITLTD 2028 (A3/BBB+) 10 185/178 185/178 0/0 COSL 2025 (Baa1/BBB) 5 171/164 172/165 +1/+1 HAOHUA 2022 (NR/BBB) 5 154/148 153/147 -1/-1 HAOHUA 2027 (NR/BBB) 10 202/197 200/194 -2/-3 Source: Bloomberg BOCI FIXED INCOME WEEKLY Update Page 4 of 9 The HY price ended lowered.

6 HY Bonds Tenor (year) ( ) Coupon Price (Bid/Ask) Monday ( / ) Price (Bid/Ask) Friday ( / ) Diff AGILE 2022 (B1/NR) 5 AGILE 2020 (B1/B+) 5 COGARD 2023 (Ba1/NR) 5 COGARD 2025 (Ba1/NR) 7 + + FTLNHD 2022 (Ba3/NR) 5 SHIMAO 2022 (BB/NR) 5 SHIMAO 2022 (Ba3/BB) 10 SUNAC 2022 (B3/B) 5 Source: Bloomberg BOCI FIXED INCOME WEEKLY Update Page 5 of 9 Source: Bloomberg G3 CURRENCIES RECENT NEW ISSUES ASIA (Ex. Japan) G3 Issuer Issuer Ticker Issue Ratings (Moody s/ S&P/Fitch) CCY Size (M) Pricing Date Maturity Coupon (%) Spread/ Yield / Changchun Urban CCUDIH Corp Baa1/NR/NR USD 400 01-Nov-18 08-Nov-21 China National Bluestar Group CNBG Corp Baa2/NR/BBB+ USD 300 31-Oct-18 Perpetual NC3 Agricultural Development Bank of China Hong Kong Branch AGRBK Corp A1/NR/NR USD 500 31-Oct-18 7-Nov-21 3mL+74bps 3mL+74bps 300 7-Nov-23 3mL+85bps 3mL+85bps Mirae Asset Daewoo DAESEC Corp Baa2/NR/NR USD 300 31-Oct-18 7-Nov-21 T3+135bps PT Pertamina PERTIJ Corp Baa2 /BBB- /BBB USD 750 31-Oct-18 7-Nov-48 Shandong Guohui SHGUOH Corp NR/NR/NR USD 600 31-Oct-18 7-Nov-19 China CITIC Bank International Limited CINDBK Corp Ba2/NR/NR USD 500 30-Oct-18 Perpetual NC5(AT1)

7 Avic International Leasing CATIC Corp NR/NR/A- USD 350 30-Oct-18 6-Nov-21 T3+175bps Evergrande Real Estate Group TOANHL Corp B2/B/B+ USD 565 30-Oct-18 6-Nov-20 645 6-Nov-22 590 6-Nov-23 Taizhou Infrastructure TZCONS Corp NR/NR/BBB- USD 300 30-Oct-18 6-Nov-21 Korea Development Bank KDB Corp Aa2/AA/AA- EUR 300 (Tap) 30-Oct-18 17-Jul-23 MS+37 Shinhan Bank SHNHAN Corp Aa3/A+/NR USD 500 29-Oct-18 05-Nov-23 T5+105bps Gansu Provincial Highway Aviation Tourism Investment Group GSHIAV Corp NR/BBB-/BBB USD 150 25-Oct-18 02-Aug-21 Hainan Airlines Holding HAIAIR Corp NR/NR/NR USD 100 24-Oct-18 29-Oct-20 BOCI FIXED INCOME WEEKLY Update Page 6 of 9 Source: Bloomberg RECENT OFFSHORE RMB BONDS Issuer Issuer Ticker Issue Ratings (Moody s/S&P /Fitch) Size RMB (M) Pricing Date Maturity Coupon China Petrochemical Corporation SINOPE Corp A1/NR/NR 1,000 15-Oct-18 31-Oct-21 Industrial and Commercial Bank of China Singapore Branch ICBCAS Corp A1/NR/NR 1,250 15-Oct-18 22-Oct-21 CIFI Holdings CIFIHG Corp Ba3/BB-/BB 1,000 13-Sept-18 20-Sept-20 Shimao Properties SHIMAO Corp NR/NR/BBB- 1,200 (Tap)

8 21-Jun-18 25-May-21 Korea Development Bank KDB Corp Aa2/AA/NR 1,750 19-Jun-18 3-July-21 Busan Bank PUSAN Corp A2/NR/NR 500 4-May-18 25-May-21 CAR INC CARINC Corp NR/NR/NR 350 24-Apr-18 04-Apr-21 Shui On Land EIBKOR Corp NR/NR/NR 600 19-Apr-18 2-Mar-21 CAR INC CARINC Corp NR/NR/NR 400 26-Mar-18 04-Apr-21 Beijing Capital Group BEICAP Corp Baa3/BBB-/BBB 630 19-Mar-18 26-Mar-20 Republic of the Philippines PHILIP Corp NR/NR/NR (Issuer: Baa2/BBB/BBB) 1,460 23-Mar-18 23-Mar-21 Korea Expressway HIGHWY Corp NR/NR/NR 1,300 14-Mar-18 28-Mar-21 Greenland GRNLGR Corp Ba2/NR/NR 1,500 13-Mar-18 20-Mar-21 Qatar National Bank QNBK Corp NR/NR/NR (Issuer: Aa3/NR/A+) 885 12-Mar-18 26-Mar-21 200 6-Mar-18 20-Mar-21 130 1-Mar-18 9-Mar-21 750 27-Feb-18 8-Mar-21 China Development Bank SDBC Corp NR/NR/NR (Issuer: A1/NR/NR( 100 8-Mar-18 19-Mar-19 Shimao Property Holdings Limited SHIMAO Corp NR/NR/BBB+ 950 08-Mar-18 15-Mar-21 Country Garden Holdings Company Limited COGARD Corp NR/NR/BBB- 950 05-Mar-18 12-Mar-21 Arab Petroleum APICOR Corp Aa3/NR/NR 630 2-Mar-18 13-Mar-21 Export-Import Bank of Korea EIBKOR Corp Aa2/AA/NR 1,500 270 300 2-Mar-18 16-Mar-21 17-Jan-18 24-Jan-21 12-Jan-18 24-Jan-21 Hitachi Capital Corporation HITCAP Crop NR/A-/NR (Parent: NR/A-/NR) 80 9-Mar-18 16-Mar-21 50 22-Feb-18 27-Feb-22 500 02-Oct-17 09-Oct-20 184 14-Sep-17 13-Oct-20 BOCI FIXED INCOME WEEKLY Update Page 7 of 9 Source: Bloomberg and BOCI as of Dec 31, 2017 2017 12 31 Source: Bloomberg as of Dec 31, 2017 2017 12 31 DEBT CAPITAL MARKETS (ASIA EX-JAPAN) STATISTICS Source.))

9 Bloomberg as of December 31,2013 2013 12 31 BOCI FIXED INCOME WEEKLY Update Page 8 of 9 Source: Bloomberg as of November 2, 2018 2018 11 2 - 10,000 20,000 30,000 40,000 50,000 60,000 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 USDmillion Asia ex-Japan G3 Currencies New Issues Volume Monthly Trend G3 NR HY HG 02,0004,0006,0008,00010,00012,00014,0001 6,00018,00020,00022,00024,00026,00028,00 0 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 RMB million Offshore RMB Bond New Issues Volume Monthly Trend CB New Issues Volume Monthly Trend USD Billion BOCI FIXED INCOME WEEKLY Update Page 9 of 9 Disclaimer This update is prepared and issued by BOCI Securities Limited ( BOCI , together with its holding companies, affiliates and subsidiaries, BOCI Group ) and does not constitute a research report or financial or investment advice.

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