BEIJING, June 5 (Xinhua) – Debenture bond sales plunged to 760.855 billion yuan in China during May 1 to May 29 due to a rational pullback after hefty issuance in March and April and squeezing effect by intensive supplies of government-backed bonds, reported Xinhua Finance, a financial news platform run by Xinhua News Agency Friday.
The figure, as compared with the all-time-high 1.61 trillion yuan for April, represented merely 200.53 billion yuan of net financing after reducing debentures matured last month, according to data released by the financial market research department of fund operation center with Bank of Nanjing.
Previously in March and April, debenture bond issues boomed in the country amid the loose credit policy environment, with March sales at relatively high 1.55 trillion yuan, up 101 percent over February this year.
Since May, however, massive supplies of government-backed bonds such as treasury bonds, local government bonds, policy bank bonds and central bank bills, absorbed much liquidity, pressing in turn debenture bond issues.
By industries, debentures sold by issuers engaged in urban investment, public utilities, comprehensive businesses, building decoration and transportation sectors took up 68.52 percent of the monthly aggregate.
By ratings, debentures with AAA, AA+ and AA ratings accounted for 67 percent, 18 percent and 13 percent of the total respectively, hinting still tight risk appetite of market investors.
By products, commercial papers (CPs), mid-term notes (MTNs), corporate bonds, private placement tools and enterprises bonds referring to bonds issued by institutions under the central government, state-owned or controlled enterprises in China, made up respectively 43 percent, 25 percent, 24 percent, six percent and two percent of the May aggregate.
Their yields in primary market sales remained mixed, with yield of CPs down further over April, yield of MTNs up slightly and yield of corporate bonds up notably.
Statistics showed that weighted average yield of debenture CPs, MTNs and corporate bonds stood at 1.85 percent, 3.25 percent and 3.66 percent respectively in May, down 17 basis points (bp), up one bp and 17 bps than April. Both yields of CPs and MTNs in primary market sales approached historical lows. (Edited by Duan Jing, duanjing@xinhua.org)
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