Insight
China's Jan-July bond market issuance up 20.93%
Last Updated:2012-09-12 17:18 | CE.cn
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According to statistics published by market rating company Pengyuan Credit Rating Company Limited, bond market issuance volume in the first 7 months of this year saw significant growth over that in the same period of last year; financial bond and short-term financing bond have been the main engines for the growth and the issuance of corporate bonds has also created new high record of the same period.  

 


According to statistics, 1,295 issues of bonds (not including national debt or central bank bill) have been released in China's bond market from January to July this year, with a total volume of RMB 3.31 trillion Yuan, increasing by 40.91 percent and 20.93 percent respectively compared with the 919 issues and RMB 2.74 trillion Yuan in the same period of last year.


The variety of bond with the largest issuance volume is again financial bond, with 119 issues and raising RMB 1.53 trillion Yuan, accounting for 46.34 percent of all issued bonds in the first 7 months; of these bonds, joint stock commercial banks released 28 issues, with a total amount of RMB 209.4 billion Yuan, accounting for 13.65 percent of financial bonds issued.


Short-term financing bond, whose issuance procedure is relatively simple, also has large issuance volume, with 511 issues and a volume of as much as RMB 765.3 billion Yuan, its issue number and issuance volume growing 43.14 percent and 33.25 percent respectively over that in the same period of last year, showing very obvious growth trend. 348 issues of medium term notes, amounting to RMB 500.5 billion Yuan, have been released, up 53.98 percent and 35.96 percent respectively compared with the same period of last year, showing very obvious growth trend also. 


From January to July, 96 issues of corporate bond have been released, raising RMB 119.3 billion Yuan, its number of issues and volume growing 159.46 percent and 67.93 percent respectively compared with the same period of last year, creating the highest record of the same period. In terms of geography, Beijing, Shanghai, Guangdong, Hubei, Shandong, and Zhejiang issued a total of 51 issues and RMB 75.7 billion Yuan in the first 7 months, accounting for 53.1 percent and 63.5 percent respectively. Generally, the geographic distribution of the issuers is becoming more than more scattered, indicating that corporate bond financing is being accepted and recognized by more and more issuers and has become an important financing channel for publicly listed companies. 


As for enterprise bond, 219 issues have been issued from January to July, amounting to a total of RMB 383 billion Yuan, the issue number and volume increasing by 7.35 percent and 63.72 percent respectively compared with the same period of last year. Geographically, the bond issuing parties concentrate in economically developed regions, with the 8 provinces and municipalities of Beijing, Jiangsu, Anhui, Shandong, Zhejiang, Inner Mongolia, Liaoning, and Chongqing having greater issuance volume, aggregating at 126 issues and RMB 268.9 billion Yuan, accounting for 57.53 percent and 70.2 percent of total; of this, Beijing issued 19 issues, collecting RMB 144.2 billion Yuan, its issuance volume ranking 1st in the country; Jiangsu issued 32 issues, collecting RMB 40.1 issues, its issue number ranking 1st in the country. 


On the whole, the issuance volume of all forms of bonds from January to July this year has increased significantly compared with the same period of last year. This is, on one hand, closely linked with decision makers' determination to promote the development of China's bond market, and, on the other hand, affected by the rather tightened credit policy in the first half of the year. 


In terms of market distribution, the inter-bank bond market is still dominant. From January to July, a total of RMB 1.27 trillion Yuan of short-term financing bonds and medium term note has been issued, accounting for 71.25 percent of total issuance (excluding financial bond, national debt, and central bank note).

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