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Energy and industrial names lead gains in AF indexes

(ATF) The ATF indexes rose Monday, led by gains in the industrial and energy sectors, on the back of positive investor sentiment and a brighter China outlook underscoring a continued recovery from the COVID-19 pandemic downturn.

The flagship China Bond 50, along with the ATF ALLINDEX Enterprise, Corporates and Local Governments sub-gauges rose 0.02%, 0.03%, 0.04% and 0.02% respectively. Only the ATF ALLINDEX Financial fell, as a result of a coupon payment.

Data released by the government have signaled a steady recovery of the Chinese economy. On Friday, the Caixin China General Services PMI, which rose to 54.8 in September from 54.0 a month earlier, recorded its fifth consecutive month of growth. 

Within the China Bond 50 index, the biggest increases were posted in the bonds of energy companies Jizhong Energy and Datong Coal Mine. Both their prices rose by 0.06%. The data indicated a yield decline of 0.02%.

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Meanwhile, the bonds of industrial companies Xi’An Hi-tech, Hangzhou Qianjiang New City and Zhuhai Da Heng Qin posted the biggest gains of the ATF ALLINDEX Enterprise. Their bonds rose 0.05%, 0.04% and 0.14% respectively, and posted the largest yield declines of the index (0.12%, 0.2% and 0.74% respectively.) 

Similarly, Beijing Yizhuang paper boosted the ATF ALLINDEX Corporates, recording a price rise of 0.29% and posting the biggest move this index. The yield on the bonds fell 1.54% 

A coupon payment by China Merchants Securities on 11 October caused a 3.31% price drop (0.1% yield increase) on its bonds and dragged down the ATF ALLINDEX Financial sub-gauge. Otherwise, all the constituents of this index rose, with Jinshang Bank recording the most significant gain: the price of its bonds rose 0.15% for a yield decrease of 1.27%.

All but one of the constituents of the ATF ALLINDEX Local Governments rose, with bonds posting a price increase of between 0.02% and 0.03%. Only the price of the bonds of the People’s Government of Jiangxi Province declined, losing 0.18%, for a yield increase of 1.02%.

AF China Bond