Asia Bond Monitor March 2022

• Éditeur: Asian Development Bank
• Année: 2022
• ISBN:
  9789292694272
• Sujet: Negocios y empresa
• Sous-sujet: Ingeniería financiera

This publication reviews recent developments in East Asian local currency bond markets along with the outlook, risks, and policy options. It covers the 10 members of the Association of Southeast Asian Nations and the People's Republic of China; Hong Kong, China; and the Republic of Korea.

Market Summaries

People’s Republic of China

Local currency (LCY) bonds outstanding in the People’s Republic of China (PRC) grew 3.9% quarter-on-quarter (q-o-q) in the fourth quarter (Q4) of 2021 to reach CNY115.1 trillion (USD18.1 trillion). The q-o-q growth in bonds outstanding was roughly stable as the government continued borrowing to help arrest a slowdown in the PRC’s economy. Local governments saw an increase in the growth rate of their bonds outstanding to 5.8% q-o-q in Q4 2021 from 4.9% q-o-q in the previous quarter. The accelerated pace of expansion was driven by efforts to complete their full-year bond quotas. The PRC’s LCY bonds outstanding rose 13.6% year-on-year (y-o-y) in Q4 2021, up from 12.8% y-o-y in the third quarter of 2021.

Table 1: Size and Composition of the Local Currency Bond Market in the People’s Republic of China

( ) = negative, – = not applicable, CNY = Chinese yuan, LCY = local currency, q-o-q = quarter-on-quarter, Q3 = third quarter, Q4 = fourth quarter, USD = United States dollar, y-o-y = year-on-year.

Notes:

1. Treasury bonds include savings bonds and local government bonds.

2. Bloomberg LP end-of-period LCY–USD rate is used.

3. Growth rates are calculated from an LCY base and do not include currency effects.

Sources: CEIC and Bloomberg LP.

Total LCY corporate bond issuance in the PRC grew 3.9% q-o-q to CNY5.2 trillion in 2021. On a y-o-y basis, LCY corporate bond issuance grew 13.9%. A number of financial institutions issued long-term bonds and perpetual bonds as part of their capital-raising efforts in Q4 2021.

Table 2: Notable Local Currency Corporate Bond Issuances in the Fourth Quarter of 2021

Corporate Issuers	Coupon Rate (%)	Issued Amount (CNY billion)
China State Railway Group Co^a
5-year bond	3.11	10
10-year bond	3.47	15
10-year bond	3.39	10
10-year bond	3.51	10
10-year bond	3.39	10
20-year bond	3.74	10
30-year bond	3.73	10
30-year bond	3.75	10
30-year bond	3.77	10
30-year bond	3.82	5
Industrial Bank^a
5-year bond	0.20	50
10-year bond	3.62	40
10-year bond	3.83	30
Industrial and Commercial Bank of China
5-year bond	3.74	10
10-year bond	3.48	50
Perpetual bond	3.65	30
Bank of China
5-year bond	3.80	10
10-year bond	3.60	40
Perpetual bond	3.64	20
China Construction Bank^a
10-year bond	3.60	35
10-year bond	3.48	12
15-year bond	3.80	10
15-year bond	3.74	8

CNY = Chinese yuan.

^a Multiple issuance of the same tenor indicates issuance on different dates.

Source: Bloomberg LP.

At the end of December, the aggregate amount of corporate bonds outstanding of the PRC’s top 30 issuers grew to CNY11.6 trillion, which comprised 28.5% of the...