Chinese Market Issues $1.69 Trillion in Bonds in First Quarter for 14% YoY Increase

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Official data points to a sizeable year-on-year rise in the value of bonds issued by China’s debt market in the first quarter of 2020, following the launch of measures by Beijing to curb the economic impacts of COVID-19.

Preliminary figures from the Chinese government indicates that China’s debt market saw the issuance of 12 trillion yuan (approx. USD$1.69 trillion) in bonds in the first quarter, for a YoY rise of 14%.

The outstanding bond balance is 103 trillion yuan, for an increase of 4% compared to the end of last year, making China’s bond market the world’s second largest.

Enterprise credit-category bond issuance and net financing both saw marked YoY increases.

Around three trillion yuan in enterprise credit-category bonds were issued in the first quarter, for a YoY rise of 35%.

Net financing was in excess of 1.7 trillion yuan, for an increase of over 800 billion yuan compared to the same period last year.

Private enterprises also issued approximately 210 billion yuan in bonds, for a YoY increase of 50%, while their net financing scale was 93 billion yuan, for the highest level in three years.

China’s interbank bond market also saw the addition of 26 offshore institutional investors in the first quarter, while offshore institutions posted a net increase in their holdings by 59.7 billion yuan.

As of the end of March there were a total of 822 offshore institutions investors on China’s interbank bond market, holding 2.26 trillion yuan in Chinese bonds in total.

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