BEIJING, Oct. 13 (Xinhua) – China's bonds unexpired by the end of August this year mounted up to 112 trillion yuan, up more than 100 percent over the end of 2015, reported Xinhua Finance citing data from the Chinese central bank, the People's Bank of China Monday.
Analysts attributed the rapidly expanding market size to the more rational structure of China's bond market and profoundly developed bond products of various types in the past five years.
Compared with the past when T-bonds and financial bonds dominated the market, corporate bond, commercial paper, mid-term note, urban financing vehicle bond, local government bond and special-purpose local government bond now well satisfy different financing needs and investors with differed risk preferences, said Zhao Qingming, an international finance expert.
By the end of August, balances of corporate debenture bonds in China stood at 25.4 trillion yuan and undue Chinese local government bonds were 24.8 trillion yuan, both of which exceeded the 18.2 trillion yuan balances of unexpired T-bonds in the country.
All of these resulted in increasing attractiveness of China's bond market to global investors. Foreign institutional investors kept increasing holdings of Chinese bonds, with their average monthly net purchase this year at over 120 billion yuan and average monthly turnover at more than 750 billion yuan by end-August,.
Latest statistics with China Central Depository and Clearing Co., Ltd. (CCDC) showed that foreign institutional investors added their holdings of Chinese bonds for 22 months in a row and held 2.94 trillion yuan of bonds on China's interbank bond market, an increase of 137.459 billion yuan over August by the end of September. Their holdings accounted for 3.0 percent of all the bonds under custody on China's interbank bond market by the end of last month. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
A single purchase
