Tag Archives: S&P China Bond Index

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 […]

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, Read more […]

Asia Fixed Income: 2014 Pan Asia Report Card

As the global yields remain low, many yield-hungry investors have turned to Asia for yield pickup and portfolio diversification. Exhibit 1 lists the yield-to-worst of the ten local currency bond markets tracked by the S&P Pan Asia Bond Index. Exhibit 1: The Yield-to-Worst of the Pan Asian Bond Indices Reflecting the strong demand and continuous Read more […]

Asia Fixed Income: China – What’s More Than Yields?

Chinese bonds continue to attract attention from global investors as they offer relatively higher yields, what’s more, Chinese bonds also have historically demonstrated low correlations with global markets. Exhibit 1 shows the correlation of the S&P China Sovereign Bond Index with major sovereign bond indices in global markets. While the index has a low correlation of 0.09 with Read more […]

Asia Fixed Income: Diversifying into Chinese Bonds

Global investors continue to explore investment opportunities in China onshore bond market. Chinese bonds undeniably offer higher yields than other major bond markets. As of Nov 5, 2014, the yield-to-worst of the S&P China Bond Index stood at 4.09% with a modified duration of 4.15, see Exhibit 1. Exhibit 1: Yield Comparison More importantly, investing into Read more […]

Two Interesting Facts of the Chinese Bond Market Volatility

The S&P China Bond Index is targeted to provide global investors an independent, transparent and broad-based benchmark. A study of the index returns revealed two interesting facts on the Chinese bond market volatility. 1)      While the volatilities of most Asian bonds retreated in the past year, the Chinese bonds have actually become more volatile. The Read more […]

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 Read more […]