Tag Archives: CNY
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…
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Asia Fixed Income: China Onshore vs. Offshore
The China offshore renminbi (CNH) bond market has been serving some investors as a gateway to Chinese bonds until the Renminbi Qualified Foreign Institutional Investor (RQFII) program takes off. The size of offshore renminbi market is approaching CNH 800 billion, yet it is relatively small when compared with the CNY 27 trillion onshore bond market,…
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Asia Fixed Income: Dim Sum – What is on the Menu?
As tracked by the S&P/DB ORBIT Index, the size of the offshore renminbi bond market rose 66% year-to-date (YTD) and reached CNY 280 billion*, which reflected the robust supply in 2014. And if we look at the index exposure by issue year, the new issues in 2014 represent 53% of the index. Exhibit 1: Index…
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The Dim Sum Bond Market Expanded 57% YTD in 2014
On the back of strong issuance this year, the size of the dim sum (as known as Offshore Renminbi) bond market, that tracked by the S&P/DB ORBIT Index, rose 57% year-to-date (YTD) to currently CNH 264 billion. As shown in Exhibit 1, 68% of the dim sum bond market is composed of the credit issuers. Note that the index…
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How Did The Chinese Bonds Perform in 1H 2014?
As the Chinese bond market rapidly expands, reaching almost CNY 30 trillion, it has gained an increasing amount of attention from global investors. Tracked by the S&P China Bond Index, the total return of the CNY-denominated bonds rose 5.7% in the 1H of 2014. While the risk of default put downward pressure to the Chinese corporates…
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The Rise of China’s Corporate Bond Market
The size of the local-currency-denominated corporate bond market in China, as measured by the S&P China Corporate Bond Index, currently stands at CNY 7.58 trillion, representing an expansion by more than 14 times since December 2009. The strong issuance was driven by the country’s robust economic growth and tighter liquidity conditions. The corporate bond sector…
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A Comparison of Two Corporate Bond Markets
The possibility of interest rates remaining low means investors will continue to search for yield while also looking to diversify market exposures. Below we offer a snapshot of two corporate bond landscapes: the U.S. corporate bond market and the Chinese corporate bond market, which has expanded rapidly in recent years. Size Tracked by the S&P…
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