EM CREDIT SUPPLY: KB Financial Group: New USD deal fair value

The People’s Bank of China’s Shanghai headquarters has adjusted the pricing mechanism for commercial housing loans, removing the distinction between first and second homes, China National Radio reported. The move followed the Shanghai government’s decision on Monday to lift purchase limits on homes outside the outer ring road for local families and for non-local residents with at least one year of social insurance or tax payments in the city, while also raising the loan quota under the personal housing provident fund.

Interbank market liquidity is expected to remain stable through August as the People’s Bank of China maintains an ample stance, Securities Daily reported. The central bank will need to preserve a supportive financial environment amid heavier government bond issuance in August and September, falling bill rates, and weakness in July retail sales and investment, the paper said, citing Wen Bin, chief economist at China Minsheng Bank.

Mergers and acquisitions in China’s A-share market are accelerating, creating space for industrial integration and value reshaping, Securities Daily reported. As of Aug. 25, a total of 3,590 M&A deals had been disclosed this year, up 10% y/y, including 107 major asset restructurings, a surge of 114% y/y, the paper said. Payment methods have also become more flexible, with innovative transaction structures such as differentiated pricing and independent performance commitments on the rise, it added.