Appendix

China Southbound: The People’s Bank of China and Hong Kong Monetary launched Southbound Bond Connect on Sept. 24, offering onshore Chinese investors the option to invest in Hong Kong’s bond market. Together with China Foreign Exchange Trade System (National Interbank Funding Center) ("CFETS"), Bloomberg introduced new solutions to facilitate seamless trading on the Southbound Bond Connect. The solutions will enable offshore dealers to provide market making services for onshore investors. Bloomberg will provides security master data and valuation data for eligible securities, displayed on the CFETS platform upon launch.

Kungfu Bond: In 2018, following consultation and a survey with over 400 market participants across Asia, Bloomberg unveiled “Kungfu bond” as the industry reference for offshore U.S. dollar bonds issued by Chinese companies and financial institutions.

IG/HY/NR: For offshore bonds, credit rating below BBB- is considered as High Yield, whereas onshore takes rating below AA as High Yield.

Functions quoted in the report:

WCDS: world CDS monitor
DDIS: debt distribution
TAGG: trades aggregate
FIW: fixed income worksheet

Relevant BI reports:

Worst may be over for China junk bonds, but not out of woods yet -- Andrew Chan
China default rate improves for another month despite contagion -- Jason Lee
China's central bank statement on Evergrande signals mixed news -- Jason Lee

Additional charts: Distressed securities

Distress count by security type