Title: China’s Bond Market Sees Robust Issuance in June, Reaching Over 70 Trillion Yuan in Total
BEIJING, July 30 — China’s bond market experienced strong growth in June, with a total of 709.16 billion yuan in various types of bonds issued, according to data released by the People’s Bank of China (PBOC) on July 29.
The PBOC’s report on the financial market’s performance in June revealed that the bond market saw significant activity, with the issuance of national bonds amounting to 128.16 billion yuan, local government bonds at 67.14 billion yuan, financial bonds at 83.34 billion yuan, corporate credit bonds at 123.39 billion yuan, credit asset-backed securities at 2.44 billion yuan, and interbank negotiable certificates of deposit at 298.43 billion yuan.
As of the end of June, the total outstanding balance of the bond market reached 165 trillion yuan. The interbank market accounted for 144.4 trillion yuan, while the stock exchange market held 20.6 trillion yuan. By type of bond, the figures stood at 30.9 trillion yuan for national bonds, 42.3 trillion yuan for local government bonds, 39.3 trillion yuan for financial bonds, 32.5 trillion yuan for corporate credit bonds, 1.3 trillion yuan for credit asset-backed securities, and 17.5 trillion yuan for interbank negotiable certificates of deposit.
In terms of market operations, the interbank bond market saw spot transactions totaling 33 trillion yuan in June, with an average daily turnover of 17.36 billion yuan, marking a year-on-year increase of 34.8% and a month-on-month increase of 12.8%. Transactions between 5 million and 50 million yuan accounted for 47.4% of the total transaction amount, while transactions exceeding 90 million yuan accounted for 46.2%. The average transaction volume was 44.96 million yuan.
The spot transactions in the stock exchange bond market reached 3.5 trillion yuan, with an average daily turnover of 1.86 billion yuan. The bond market for commercial banks saw 108,000 transactions, with a total transaction amount of 41.12 billion yuan.
In terms of bond market openness, as of the end of June, the outstanding balance of bonds held by foreign institutions in the Chinese bond market was 4.35 trillion yuan, accounting for 2.6% of the total outstanding balance. Specifically, the outstanding balance of bonds held by foreign institutions in the interbank bond market was 4.31 trillion yuan, with foreign institutions holding 2.21 trillion yuan in national bonds, accounting for 51.3%, and 0.96 trillion yuan in policy financial bonds, accounting for 22.3%.
From the perspective of the money market, in June, the interbank call loan market saw transactions of 7.6 trillion yuan, down 45.4% year-on-year and 6.3% month-on-month. Bond repurchase transactions reached 117.7 trillion yuan, down 24.4% year-on-year and 2.2% month-on-month. The standard bond repurchase transactions in the stock exchange market were 38.3 trillion yuan, down 0.5% year-on-year and 1.8% month-on-month.
In June, the weighted average interest rate for interbank call loans was 1.87%, up 2 basis points month-on-month, while the weighted average interest rate for repo transactions was 1.89%, up 7 basis points month-on-month.
The commercial bill market saw an issuance amount of 3.4 trillion yuan and a discount amount of 2.9 trillion yuan in June. As of the end of June, the outstanding balance of commercial bills was 17.8 trillion yuan, with a discount balance of 12.9 trillion yuan.
In June, 102,000 small and micro enterprises issued bills, accounting for 93.0% of all bill-issuing enterprises, with a bill issuance amount of 2.4 trillion yuan, accounting for 71.4% of the total bill issuance amount. Meanwhile, 110,000 small and micro enterprises conducted discount transactions, accounting for 96.3% of all discount enterprises, with a discount transaction amount of 2.2 trillion yuan, accounting for 76.1% of the total discount transaction amount.
The robust performance of China’s bond market in June reflects the country’s ongoing efforts to develop a more diversified and resilient financial market, in line with its broader economic development strategy.
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