Tag Archives: S&P China Bond Index

Asian Fixed Income: The Birth of Bond Connect

As a follow up to the previous article, Bond Connect officially launched on July 3, 2017. Bond Connect allows international market participants to trade China’s interbank bonds through the Hong Kong Stock Exchange.  It marked a milestone in China to further open up its capital market, following the China Interbank Bond Market (CIBM) announcement last Read more […]

Asian Fixed Income: Chinese Bond Market Was Slow in 2016

The performance of China’s fixed income market has lagged other Asian countries this year.  According to the S&P China Bond Index, the fixed income market delivered a YTD total return of 3.57% as of Oct. 11, 2016.  China was one of the top three outperforming countries in the S&P Pan Asia Bond Index last year; Read more […]

Asian Fixed Income: A Quest for High-Quality Chinese Corporate Bonds

In a previous piece, we highlighted the emerging credit risk in Chinese corporates. Nevertheless, a recent survey reinforced the belief in the long-term future of China’s onshore bond market and pointed to an expected increase in exposure to Chinese bonds.[1]  As China’s bond market continues to grow, it may be important for market participants to Read more […]

Asian Fixed Income: PBOC Has Widened Access to China’s Onshore Bond Market for Foreign Investors

On Feb. 24, 2016, the People’s Bank of China announced that offshore commercial banks, insurance companies, securities companies, fund management companies, and pension funds are free to invest in China’s interbank bond market.  Previously, foreign investors could only access China’s onshore bond market through a QFII or RQFII quota.  The removal of the quota system Read more […]

Asian Fixed Income: 2015 Pan Asia Report Card

Despite the weakness in local currencies, the S&P Pan Asia Bond Index, which is designed to track local currency bonds in 10 countries and is calculated in USD, delivered a total return of 1.45% for 2015.  The S&P Pan Asia Corporate Bond Index rose 2.54% in the same period, outperforming the S&P Pan Asia Government Read more […]

The Volatility of Bond Markets

China’s onshore bond market recorded strong growth in the first 11 months of 2015 and its total return has increased 6.98% year-to-date (YTD), as measured by the S&P China Bond Index.  The S&P China Composite Select Bond Index, an investable index that tracks the performance of Chinese sovereign bonds, agency bonds and bonds issued by Read more […]

Asian Fixed Income: Chinese Bonds Rose After China Rate Cut

China announced another policy rate and RRR cut this week. The one-year deposit and lending rates were lowered by 25bps to 1.75% and 4.65%, while RRR is reduced by 50bps to 18%. These measures aim to offset increased capital outflow and stabilize the economy. While investors should remain cautious with market volatilities, certain Chinese assets with Read more […]

Asia Fixed Income: People’s Bank of China (PBoC) Rate Cuts

On June 28, 2015, the PBoC announced a 25 bps policy rate cut and a 50 bps targeted reserve ratio cut to support growth. Following the news, the money market rate opened lower and the yuan weakened. While there was no significant or immediate impact on China’s onshore bond market, the yield-to-maturity tracked by the Read more […]

PMIs vs. Pan Asia Bond Markets

The China PMI continued to show deterioration while the headline PMIs for other countries like South Korea, Taiwan and Indonesia also ticked down.  The market is expecting more easing to come in order to support the growth. As of May 15, 2015, the S&P Pan Asia Bond Index rose 0.10% this month, bringing the year-to-date Read more […]

Asia Fixed Income: Foreign Investor Access to Onshore Chinese Bond Markets Grows

China continues to broaden foreign investor access to their onshore bond market. Luxembourg is the latest country being granted an RQFII quota by the People’s Bank of China, followed Canada, Germany, Qatar and Australia.  According to the data published by State Administration of Foreign Exchange (SAFE) on April 29, 2015, the approved RQFII investment quota Read more […]