APAC Credit Roundup: China economy, Singapore Banks, Tencent

China’s seven-day National Day Golden Week holiday (Oct 1-7) has come to an end, and the consumption trend looks mixed. Domestic travel volumes were broadly stable YoY, but more traffic flowed to lower-tier cities and consumers looked for lower-cost options such as camping. Spending leaned towards services and select electronics categories (e.g. mobile/telecom and appliances), but movie box office performance was weak. Cross-border travel to Hong Kong and Macau was strong, with Mainland China tourist visitations to the two cities up 9%/20% YoY. Secondary property sales were strong over the Golden Week, with a 59% YoY increase in the top 26 cities driven by the mortgage subsidy policy implemented on Oct 1. On Singapore Banks, following MAS’s proposal to implement TLAC in May, the government this week authorized the regulator to move forward with implementation;