Helping the real economy to issue bonds of 54.7 trillion yuan during the year
Our reporter Bao Xing'an
This year, my country’s bond market has performed well, and the overall issuance scale has continued to grow, attracting more foreign institutional investors to actively allocate and supporting the real economy has been significantly enhanced.
According to the data of Oriental Fortune Choice, a reporter from Securities Daily said that as of December 10 this year, the bond market has issued a total of 54.7 trillion yuan of various bonds, a year-on-year increase of 27.8%.
From the perspective of various types of bonds, as of December 10 this year, national debt issuance is 6,704.74 billion yuan, local government bond issuance is 6,312,848 million yuan, central bank bill issuance is 56 billion yuan, financial bond issuance is 8,870.451 billion yuan, and corporate bond issuance is 376.289 billion yuan. The issuance of corporate bonds is 3,334.854 billion yuan, the issuance of medium-term notes is 2,290,657 million yuan, the issuance of short-term financing bills is 4,747,283 million yuan, the issuance of international agency bonds is 12 billion yuan, the issuance of government-backed agency bonds is 213 billion yuan, the issuance of asset securitization is 2,537,342 million yuan, convertible bonds. The issuance of 232.831 billion yuan, 49.947 billion yuan of exchangeable bonds, 18.234967 billion yuan issuance of inter-bank certificates of deposit, and 685.275 billion yuan issuance of directional instruments.
In terms of industry, the top five industries in bond issuance are finance, industry, public utilities, real estate, and energy; in terms of regions, the top five regions in bond issuance are Beijing, Guangdong, Shanghai, Jiangsu and Zhejiang.
Guo Yiming, director of investment advisory at Jufeng Investment Consulting, told the "Securities Daily" reporter that this year my country's bond market has steadily expanded various bond issuances, providing more financial support to the real economy and playing a vital role in economic recovery.
Guo Yiming said that the registration system was implemented for the issuance of corporate bonds and corporate bonds this year, and the efficiency of bond issuance has been improved, and the loose monetary policy is also conducive to bond issuance.
In addition, the authorities' encouragement for bond issuance has also increased the scale of bond issuance.
With the efforts of various parties, the degree of bond marketization has increased significantly, and its effect on the real economy has become greater and greater.
Liu Xiangdong, deputy director of the Economic Research Department of the China International Economic Exchange Center, told a reporter from the Securities Daily that the outbreak of the epidemic this year has affected many companies. To overcome short-term liquidity difficulties, it is necessary to increase financial support and expand the issuance of high-quality corporate bonds. Help companies get out of trouble.
Liu Xiangdong believes that many companies in the real economy face the difficulty of financing and expensive financing. With policy support, increasing the scale of corporate bond financing can effectively alleviate this problem and enable the real economy to maintain normal production.
It is worth mentioning that as my country’s bond market has accelerated its opening to the outside world, it has enhanced the attractiveness of international investors.
On December 2, the bond custody volume data released by China Central Government Securities Depository and Clearing Co., Ltd. showed that the bond custody volume of foreign institutional investors increased significantly. In November, the denomination of foreign institutional bond custody was 2,676,336 billion yuan, a year-on-year increase of 47.88%. Compared with the end of the previous year, an increase of 47.38%.
So far, foreign institutional investors have increased their holdings of Chinese bonds for 24 consecutive months.
On December 3, the Shanghai Headquarters of the People's Bank of China released data showing that as of the end of November 2020, interbank market bonds held by foreign institutions were 3.1 trillion yuan, an increase of 96.721 billion yuan from the end of October, accounting for approximately the total amount of interbank bond market custody. 3.1% of it.
In terms of bond types, the main custody bond of overseas institutions is treasury bonds, with a custody volume of 1.79 trillion yuan, accounting for 57.9%; followed by policy financial bonds, with a custody volume of 897.99 billion yuan, accounting for 29.0%.
In November, 17 new overseas institutions entered the inter-bank bond market.
As of the end of November, a total of 893 overseas institutions entered the market, of which 467 entered the market through direct investment channels, 612 entered the market through the “Bond Connect” channel, and 186 entered the market through two channels at the same time.
Cui Zhijuan, a professor at the Beijing National Accounting Institute, told the "Securities Daily" reporter that my country's bond market is gradually opening up to the outside world, investment by overseas institutions has become more convenient, and the liquidity and activity of the bond market has continued to increase.
At the same time, China's economy continues to recover, and foreign investors have full confidence in the future development of China's economy.
The higher yield of RMB bonds is another important reason for attracting foreign investors to increase their holdings of Chinese bonds.
"As the profitability of Chinese companies has gradually improved and the function of maintaining and increasing the value of RMB-denominated assets has increased, the favor of Chinese bonds by foreign investors is a natural response to capital seeking profit." Liu Xiangdong said.
(Securities Daily)