Chinese Debt Instruments Maintain Steady Growth in June


The issuance of debt instruments in China posted steady growth in June according to the latest industry data, despite a spate of bond defaults since the start of 2018.

Preliminary figures from the National Association of Financial Market Institutional Investors (中国银行间市场交易商协会) indicate that approximately 340 billion yuan in debt instruments were issued in June, for an increase of 40 billion yuan compared to the preceding month.

As of the end of June there was a total of 9.19 trillion yuan in debt instruments outstanding, with no increase in defaulting entities during the month, and “debt instrument risk under control overall.”

In June a total of 207 companies from 19 sectors and 21 regions in China issued debt instruments, with energy, metals and wholesale and retail trading all seeing on-month increases of nearly 30%.

In regional terms the 12 provinces in China’s west issued debt instruments worth around 36 billion yuan, for an on-month rise of nearly 70%, while the six provinces in the country’s centre issued instruments worth around 38 billion yuan, for an on-month increase of almost 40%.