Official data points to a sizeable on-month decline in spot bond transactions by foreign institutional investors on the Chinese market in June.
Figures released by the China Foreign Exchange Trade System & National Interbank Funding Centre (中国外汇交易中心) on 6 July indicates that as of the end of June a total of 455 foreign institutional investors had entered the Chinese bond market by means of the “settlement agency” model, for an increase of 5 that month.
565 foreign institutional investors had entered the market via the Bond Connect initiative, for an increase of 17 that month.
In June foreign institutional investors concluded a total of 715.3 billion yuan in bond spot transactions, for an on-month decline of 19%.
This transaction volume also comprised 2% of total bond spot transactions that month.
Foreign institutional investors made 408.1 billion yuan in bond purchases in June, coinciding with sales of 307.1 billion yuan, for net purchases of 101 billion yuan (approx. USD$14.38 billion).
A total of 59.9 billion yuan in net purchases were made via settlement agency, and 41.1 billion via Bond Connect.