Offshore Institutions Hold 4 Trillion Yuan in Bonds on China’s Interbank Market

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Offshore institutions held 4 trillion yuan in bonds on China’s interbank market as of the end of December 2021, according to data released by the Chinese central bank on 10 January.

This amount accounted for approximately 3.5% of the interbank bond market total trustee volume.

Offshore investors held 2.45 trillion yuan in government bonds, accounting for 61.3% of their total holding, as well as 1.09 trillion yuan in policy finance bonds, accounting for 27.3%.

December saw the addition of six new offshore institutions to China’s interbank bond market, bringing the total to 1016 as of the end of last year.

507 of these institutions participate in interbank bond market via direct channels, while 728 make use of the Bond Connect initiative, and 219 make recourse to both.