China’s Financial Markets Snapshot – June 2025
China's financial markets in June showed strong issuance and trading activity across bonds, money markets, and equities, alongside steady foreign participation.
Bond Issuance
Total issuance reached RMB8.79 trillion, led by interbank CDs (RMB3.46 trillion), treasury bonds (RMB1.59 trillion), and corporate credit bonds (RMB1.43 trillion). Outstanding bonds in custody stood at RMB188.5 trillion by end-June.
Bond Market Activity
Interbank cash bond trading totaled RMB34.3 trillion, averaging RMB1.7 trillion daily, up 6.2% month-on-month. Exchange bond turnover was RMB3.8 trillion, while commercial bank OTC trades reached RMB99.6 billion.
Foreign Holdings
Overseas institutions held RMB4.3 trillion in bonds (2.3% of total), with concentrations in treasury bonds (49.6%), interbank CDs (27.2%), and policy bank bonds (19.1%).
Money & Bill Markets
Interbank lending rose to RMB8.4 trillion (+26% MoM), while repos surged to RMB156.3 trillion (+20% MoM). Average lending rates fell to 1.46%.
Commercial drafts issued reached RMB3.5 trillion; MSMEs dominated, accounting for over 90% of issuers and nearly 97% of discounters.
Equities
The Shanghai Composite Index rose 2.9% to 3444.4, while the Shenzhen Component Index climbed 4.2% to 10465.1. Daily turnover grew 8.6% in Shanghai and 11.5% in Shenzhen.
Investor Concentration
The interbank bond market had 3,989 institutional investors, but holdings were concentrated: the top 50 held 48% of corporate credit bonds, and the top 200 held nearly 80%.
First, please LoginComment After ~