China’s Bond Market Sees Robust Issuance in June, Totaling 709.16 Billion Yuan
BEIJING, July 30,2024 – The People’s Bank of China (PBOC) reported that the Chinese bond market witnessed a strong issuance of 709.16billion yuan in June. This figure encompasses all types of bonds, including government bonds, local government bonds, financial bonds, corporate credit bonds, asset-backed securities, and interbank certificates of deposit.
The breakdown of the issuance by category is as follows:
- Government bonds: 128.16 billion yuan
- Local government bonds: 67.14 billionyuan
- Financial bonds: 83.35 billion yuan
- Corporate credit bonds: 123.39 billion yuan
- Asset-backed securities: 2.45 billion yuan
- Interbankcertificates of deposit: 298.43 billion yuan
As of the end of June, the total outstanding balance of bonds under custody in the Chinese market reached 165 trillion yuan. This includes 144.4 trillion yuan in the interbank market and 20.6 trillion yuanin the exchange market.
The PBOC also highlighted the robust activity in the bond market during June. The interbank bond market saw a total of 33 trillion yuan in secondary bond transactions, with a daily average of 173.59 billion yuan. This represents a year-on-year increase of34.8% and a month-on-month increase of 12.8%.
Furthermore, the exchange bond market recorded 3.5 trillion yuan in secondary bond transactions, with a daily average of 1862.8 billion yuan. Commercial banks’ over-the-counter bond marketsaw 108,000 transactions, totaling 411.2 billion yuan.
The report also emphasized the increasing participation of foreign institutions in the Chinese bond market. As of the end of June, foreign institutions held 4.35 trillion yuan in bonds under custody, accounting for 2.6% of the total outstanding balance. Of this amount, 4.31 trillion yuan were held in the interbank market. Notably, foreign institutions hold 2.21 trillion yuan in government bonds, representing 51.3% of their total holdings, and 0.96 trillion yuanin policy financial bonds, accounting for 22.3%.
The PBOC’s report reflects the continued growth and development of China’s bond market, attracting both domestic and international investors. The robust issuance and active trading activity suggest a healthy and vibrant market environment. The increasing participation of foreign institutions further indicates themarket’s attractiveness to global investors.
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