Asia credit weekly spotlight (week of 10 Sep to 16 Sep)

China HY industrial outperformed WoW, Asia IG was 2bp tighter to 63bp, while Asia HY widened 9bp to 325bp. In IG, China outperformed (-5bp WoW), while the rest was 2bp tighter to 1bp wider. In HY, China industrial outperformed (-15bp WoW), while China property underperformed, and the rest space was relatively stable. Higher rates weighed on performance, with Asia IG and HY posting returns of -0.74% and -0.69%. The Fed hiked by 25bp on Sep 16. BofA US economists call for two more hikes this year, in Oct and Dec. The lower rates volatility should be good for credit demand. We prefer front-end with more attractive yields following the latest hike. APAC primary supply dropped to US$1.65bn, YTD APAC supply stands at US$215bn (+1% YoY), where AXJ increased 9% YoY, Japan flat YoY, while Australia decreased 21% YoY. Sector highlights: China's government required online hotel platforms to reduce industry competition;