China National Petroleum Corp. is marketing dollar-denominated notes and China Cinda Asset Management Co. plans its first bond sale in the U.S. currency, after borrowing costs dropped to the lowest in almost 11 months.
Investors should buy bullish options on Taiwan’s benchmark stock index because it will extend gains as Chinese trade and tourism increase and rising technology sales boost corporate profits, Morgan Stanley said.
CLP Holdings Ltd., Hong Kong’s largest electricity supplier, Ratchaburi Electricity Generating Holding Pcl and State Grid Corp. of China are offering dollar- denominated debt as utility bonds have the best start to the year in more than a decade.
Investors should sell speculative- grade debt of government-backed Asian companies and buy property or commodity bonds as economic growth in the region justifies more risk-taking, according to Morgan Stanley.
Foreign currency bonds issued by Chinese property companies may receive a “terrific boost” after China signaled the end of a two-year currency peg to the dollar, reducing the chance of higher borrowing costs, Morgan Stanley said.