BEIJING, May 8 (Xinhua) -- China Foreign Exchange Trade System (CFETS) posted Wednesday the cash bond turnover by foreign institutional investors in the country's interbank bond market surged 106 percent year on year in April, reported Xinhua Finance, a financial information platform run by Xinhua News Agency.
They contributed 785.4 billion yuan of cash bond turnover last month, taking up two percent of the aggregate cash bond turnover in April in China’s interbank bond market.
Their net purchase of cash bonds were 463.4 billion yuan and net selling totaled 322 billion yuan, generating a net purchase of 141.4 billion yuan in April.
By different accesses, 466 billion yuan of cash bond turnover were made through settlement service agencies and 319.4 billion yuan were realized by the Bond Connect, a program between the Chinese mainland and Hong Kong allowing investors to trade bonds on each other's interbank bond markets.
By the end of April, 447 foreign institutional investors conducted bond transactions on the interbank bond market via settlement service agencies, five more than the comparable number by end March. Via the Bond Connect program, 532 ones entered last month, an increase of 12 ones over March.
They generally favored bond products with high liquidity such as policy bank bonds, Chinese government bonds, and negotiable certificates of deposit (NCD), whose turnover accounted respectively for 41 percent and 43 percent and 13 percent of the monthly aggregate and reached in total 97 percent of the monthly aggregate.
In April, they mainly invested in bonds with terms to maturity at less one year, 1-3 years, 3-5 years and 7-10 years, taking up respectively 28 percent, 18 percent, 19 percent and 26 percent of the total. (Edited by Duan Jing, duanjing@xinhua.org)
A single purchase
