1.77 Trillion Yuan in Corporate Bonds Issued since Start of 2021, Local Government Financing Platforms Dominate


China has seen modest increase in fundraising via corporate bond issues in 2021, with local government financing platforms accounting for the majority of funds raised.

There were a total of 2090 corporate bond issues in China during the period from the start of 2021 to 15 July, raising a total of 1.77 trillion yuan (USD$273.18 billion), for a YoY increase of 3.67%, according to data from Tonghuashun.

“Against a background of expansion in the market for direct financing, since the start of this year the bond market has maintained stable growth, significantly reflecting the strong demand of issuers for direct financing, said Ming Ming (明明), deputy-head of the China CITIC Securities Research Institute, to Securities Daily.

Ming Ming pointed out that local government financing platforms have comprised the mainstay of issuers, and expects the third quarter to be the peak period for corporate bond issuance.

Municipal investment bond issues were 1462 in total, raising 1.118135 trillion yuan in funds, for a YoY increase of 21.02%, and accounting for 63.04% of total corporate bond funds during the period from the start of year until 15 July.