China primary bond market:

Japan ESG issuance surpassed China for the first time in 2022

• Offshore new issuance: 65 Chinese issuers issued debt in the offshore market in March. State Grid Corp. of China was the largest issuer. 
   
• New issuance amount: Issuance amount by Chinese entities increased in March to $266 billion, marking the highest monthly issuance amount since April 2021.
   

• Subscription rates for dollar bonds issued by Chinese entities reached the highest among all Asia-Pacific ex-Japan entities in September 2021, but dropped for the remainder of 2021. This year has seen a slight pickup although momentum has weakened recently.
   

• The industrial sector is experiencing a rebound in debt issue volumes. 

Issuance amount across currencies ($ millions)

Source: Bloomberg Quant Platform (BQuant), Global Data

New issuance subscription by market of risk

Source: Bloomberg Quant Platform (BQuant), Global Data

 

---

Debut issue volume by industry

Source: Bloomberg Quant Platform (BQuant), Global Data

China offshore new issuance breakdown

Source: LEAG <GO>

---

• APAC ESG bonds issuance: China's ESG bond issuance kept falling in March 2022 and was overtaken by Japan.
• China ESG bonds issuance: Green bonds continued to dominate ESG bond issuance. However, the total volume of issuance has experienced a downward trend in 2022.
• China ESG bonds issuance by industry: Utilities sector has issued the highest volume of ESG securities since October 2021.

ESG bonds issuance volume in APAC

Source: Bloomberg Quant Platform (BQuant), Global Data

Debt Issue Volume by Theme in Chinese Market

Source: Bloomberg Quant Platform (BQuant), Global Data

Debt Issue Volume by Industry in Chinese Market

Source: Bloomberg Quant Platform (BQuant), Global Data