Highlights in the March report
- Despite ongoing uncertainty over trade relations, net foreign inflows into China’s interbank bond market continued growing in Q4 on the back of a stabilizing CNY, as well as attractive yields, considering there’s a significant volume of debt outstanding with sub-zero yields in the global bond market.
- Toward the end of December, policymakers from the central bank published draft rules to govern corporate bond default disposal in order to help the financial system guard against systemic risks.
- Despite default risks, China’s credit growth is expected to hit $13-13.5 trillion CNY in 2020, up from $11.9 trillion CNY in 2019. Local government financing vehicles (LGFVs) are expected to drive new credit issuance in 2020, with LGFV issuance estimated to grow by $3.7 trillion CNY this year.
Read the full whitepaper now at the link below
Supporting documentsClick link to download and view these files
FTSE Russell China Bond Research reportPDF, Size 0.38 mb