The Central Bank of the Republic of China published August statistics on China’s financial markets, covering bond issuance, outstanding custody balances, trading activity and investor participation, alongside money market, bill market and equity market indicators. Total bond issuance reached CNY 7.43tn during the month and total bonds under custody stood at CNY 192.0tn at end-August, with overseas institutions holding CNY 3.9tn or 2.0% of the total. Issuance included CNY 1.33tn in government bonds, CNY 0.98tn in local government bonds, CNY 1.16tn in financial bonds, CNY 1.24tn in corporate credit bonds, CNY 21.2bn in credit asset-backed securities and CNY 2.70tn in negotiable certificates of deposit. Of the end-August custody total, CNY 169.8tn was held in the interbank market and CNY 22.2tn in the exchange market, with corporate credit bond holdings concentrated among the top investors, where the top 50 held 53.0% and the top 200 held 83.9%. Interbank cash bond turnover was CNY 33.1tn (average daily CNY 1.6tn) and exchange cash bond turnover was CNY 4.4tn, while bank counter bond trading totalled CNY 63.97bn across 98,000 trades; overseas holdings were primarily in government bonds (CNY 2.0tn), negotiable certificates of deposit (CNY 0.9tn) and policy bank bonds (CNY 0.7tn). Money market turnover comprised CNY 8.8tn in interbank lending and CNY 160.8tn in bond repos, with weighted average rates of 1.40% for interbank lending and 1.41% for pledged repos. Commercial bill acceptances were CNY 3.3tn and discounts were CNY 2.5tn, with small, medium and micro enterprises accounting for 93.3% of bill issuers and 96.6% of discounters, while equities ended the month with the Shanghai Composite at 3,857.9 and the Shenzhen Component at 12,696.2 and higher average daily turnover in both markets.

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