BEIJING, Dec. 9 (Xinhua) – China's primary bond market may witness an 8-9 percent rise in total issues over 2019 in 2020, predicted a China bond market prospects report for 2020 released by Standard Chartered recently.
As the report holds, primary bond market issues is likely to post robust growth given the expected active fiscal policy and moderating lending growth in China in next year.
On onshore market, total bond issues may rise from the predicted 44 trillion yuan this year to 47-48 trillion yuan in 2020, with net issues forecasted to grow to 12-13 trillion yuan from the anticipated 11 trillion yuan this year.
By far, total bond issues on onshore bond market reached 41 trillion yuan and net issues grossed 10.8 trillion yuan, according to data from the Standard Chartered report.
Since the third quarter of 2018, value of China's outstanding bonds had exceeded that of Japan and may mount up to 107-108 trillion yuan by the end of 2020 from the about 95.4 trillion yuan at present, says the report.
In the four quarters of 2020, seasonal volatility of bond issues on China's primary market may continue to weaken and relatively stable issues in different quarters are likely, with their respective proportions in annual total expected to be 23 percent, 26 percent, 27 percent and 24 percent.
For debenture bonds, annual issues may continue to increase on expected loosening in lending policies and growing demand from onshore investors in 2020.
Since the beginning of 2019, China's debenture bond yields have declined about 87 basis points while yields for Treasury bonds hardly changed over the period.
Under such circumstances, the report holds that net debenture bond issues in China may jump by 20 percent year on year to 5.7-6.0 trillion yuan in 2020. (Edited by Duan Jing, duanjing@xinhua.org)
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