The latest data from the Chinese central bank points to a marked rise in bond issuance in 2020 amidst the peak of the COVID-19 pandemic.
The Chinese bond market saw the issuance of 57.3 trillion yuan (approx. USD$8.87 trillion) in bonds in 2020, for a YoY rise of 26.5%. This included 48.5 trillion yuan in bonds issued in the interbank bond market, for a YoY rise of 27.5%.
China’s bond issues in 2020 included 7 trillion yuan in government bonds, 6.4 trillion yuan in local government bonds, 9.3 trillion yuan in finance bonds, 358 billion yuan in government support agency bonds, 2.3 trillion yuan in asset backed securities, 19 trillion yuan in interbank certificates of deposit and 12.2 trillion yuan in corporate credit bonds.
As of the end of 2020 China’s bond market custodial balance was 117 trillion yuan, while the interbank bond market custodial balance was 100.7 trillion yuan.
Interbank bond market transactions also saw a marked increase in 2020. In 2020 bond market spot transactions totalled 253 trillion yuan, for a YoY rise of 16.3%, including 232.8 trillion yuan in interbank bond market spot transactions, for a YoY rise of 12% and an average daily transaction volume of 935.04 billion yuan.
Exchange bond market spot transactions totalled 20.2 trillion yuan, for a YoY increase of 142.6%, and an average daily transaction volume of 83.04 billion yuan.