Chinese state-owned duo hit Asian G3 bond market

China's largest construction company and a local government financing vehicle from Tianjin add to a market struggling to digest a flood of new paper.

Two Chinese state-owned enterprises executed international dollar bonds on Tuesday, adding to a market, which shows signs of struggling to digest the recent flood of paper.

Monday’s issue by Citic Ltd provided a particularly poor backdrop for a $500 million transaction by Tianjin Infrastructure Construction and Investment TJII and a $1 billion offering by China State Construction Engineering Corp CSCEC.

Citic’s dual tranche five- and 10-year transaction widened by 5bp and 7bp during Asian hours on Tuesday after failing to offer a new issue premium. Of the two new deals, only TJII made any concession to the market.

Both deals came off the...

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