(ATF) Chinese credits extended a winning streak of daily returns to five after data showed the world’s second-largest economy is maintaining its recovery from the pandemic downturn.
The ATF China Bond 50 Index climbed 0.03% Monday to close at 106.89, its highest in more that three months. Returns on the 50 bonds tracked by the gauge have increased 0.19% this month as inflation fears that have given a selloff in bonds this year appeared to ease.
Factory output grew 9.8% in April from a year ago from 14.1% in March, National Bureau of Statistics data showed. Retail sales, meanwhile, rose 17.7% from 34.2% in March.
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Julian Evans-Pritchard, senior China economist at Capital Economics, in a note said month-on-month retail sales growth fell well below its pre-pandemic pace.
“Looking ahead, we think the rebound in consumption should gather pace again in the coming months as the labour market continues to tighten,” he said.
A sub-index of state-owned enterprise (SOE) bonds climbed 0.04%, extending gains to four days and 0.11%. They Financials sub-gauge also rose 0.04%, a sixth day of advances that has seen the measure rise 0.27% a reach a month’s high.