Asia Credit:China IG corp new issues-No juice

　　YTD we have seen ~USD32 billion in China IG supply (around 70% of total IGissuance in Asia), of which the corporates vs. financials split is roughly 50:50.

　　While YTD supply is still down about 40% yoy in the China IG corporate space,it has picked up meaningfully in the past couple of months (Figure 1). Weforesee the recent renewed pace of issuance to continue in the near term, atleast in June (assuming no global shock). Surprisingly, investor view seems tobe that the supply pipeline is not huge. We do acknowledge that it might slowdown a bit into July/August as companies enter the 1H results season and theusual summer lull kicks in. However, we are in the camp that supply mightsurprise on the upside in the near term. Having said this, we think it's a bit of afutile exercise to try and predict the size of possible new issuance. Notethough that there are just around USD2 billion in China IG corporate bondsmaturing in the rest of this year, and about USD15 billion in 2017.