Foreign Institutions Hold Nearly 3% of China’s Interbank Market Bonds: PBOC

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The latest data from the Chinese central bank points to ongoing growth in the share of bonds on the domestic interbank market that are held by offshore institutional investors.

As of the end of June 2022 offshore institutions held 3.57 trillion yuan of interbank bonds in China, accounting for 2.9% of the total custodial amount, according to figures released by the Shanghai office of the People’s Bank of China (PBOC) on 26 July.

Offshore institutions held 2.32 trillion yuan in government bonds, accounting for 63.4% of the total, as well as around 860 billion yuan in policy finance bonds, for a 23.6% share.

5 more foreign intuitions entered the Chinese interbank bond market in June, bringing the total to 1043 as of the end of the month.

Offshore institutions engaged in total interbank bond market spot transactions of around 940 billion yuan in June, for a daily transactional average of around 44.9 billion yuan.