OFFSHORE investors bought Chinese government bonds at the fastest pace so far this year in June, lifting their holdings of the sovereign debt to a record high for a fourth consecutive month. Total holdings of Chinese government bonds by offshore investors stood at a record 1.16 trillion yuan (US$168.48 billion) at the end of June, according to calculations using data released yesterday by China Central Depository and Clearing Co., the country’s primary bond clearing house. That was up 2.43 percent from a month earlier, the largest percentage monthly increase in holdings of the bonds since December. That month saw record foreign outflows of 53.67 billion yuan from onshore equities. In contrast, foreigners were net buyers of Chinese shares in June, with inflows totaling 42.6 billion yuan, data from Hong Kong Exchanges and Clearing Co. showed. In April, the Bloomberg Barclays Global Aggregate Index began including policy bank bonds, issued by China Development Bank, Agricultural Development Bank of China and Export-Import Bank of China, alongside Chinese government bonds. The 20-month phased inclusion of Chinese bonds will take China’s weight in the index to 6.03 percent. Data from Bond Connect, which offers access to the Chinese mainland’s onshore interbank market through Hong Kong, showed trading volumes and average daily turnover once again reached record highs in June. Additional data on holdings of bonds traded on China’s interbank market, from the Shanghai Clearing House, were not yet available yesterday afternoon. (SD-Agencies) |