China primary bond market:

China onshore and ESG bonds trend up

• Offshore credit bonds new issuance: 52 Chinese issuers raised $8 billion of debt in the offshore market in June. Bank of China was the largest issuer.
   
• Onshore credit bonds new issuance: 677 issuers raised 1.2 trillion yuan of bonds in the China onshore market, with new issuance volume increasing 60% from the previous month.
   

• Subscription rates for dollar bonds issued by Chinese entities were surpassed by entities from other Asia-Pacific ex-Japan markets excluding Hong Kong for the second month since May 2022.
   

• The industrial sector is experiencing a rebound on issuance volume of debut issues after the continuous drop since March 2022.

Issuance amount across currencies ($ millions)

Source: Bloomberg Quant Platform (BQuant), Global Data

Offshore new issuance subscription by market of risk

Source: Bloomberg Quant Platform (BQuant), Global Data

 

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Debut issue by industry

Source: Bloomberg Quant Platform (BQuant), Global Data

China onshore new issuance monthly (CNY:MM)

Source: LEAG <GO>

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• APAC ESG bonds issuance: China's ESG bond issuance volume retrieved the highest in Asia after being surpassed by Korea in May 2022.
• China ESG bonds issuance: Green bonds continued to dominate ESG bond issuance in the Chinese market. The falling trend of total volume of issuance since March 2022 has stopped in June 2022.
• China ESG bonds issuance by industry: The financial sector's ESG bonds issuance volume was surpassed by the industrial sector in June 2022

ESG bonds issuance volume in Asia-Pacific

Source: Bloomberg Quant Platform (BQuant), Global Data

ESG debt issue by theme in Chinese market

Source: Bloomberg Quant Platform (BQuant), Global Data

ESG debt issue volume by industry in Chinese Market

Source: Bloomberg Quant Platform (BQuant), Global Data