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Financial and industrial names lead ATF index losses

(ATF) Financial and industrial names posted losses on Tuesday and recorded the biggest moves in the ATF indices, even as these held steady overall.

The ATF ALLINDEX Corporates and Local Governments inched up by just 0.01%, while the flagship China Bond 50 index, the ATF ALLINDEX Financial and Enterprise didn’t move at all.

The flagship China Bond 50 index held steady on Tuesday.

Within the China Bond 50 index, losses were seen in the bonds of Shanghai Pudong Development Bank (-0.24%), Bank of Communications (-0.17%), Agricultural Bank of China (-0.15%) and Agricultural Development Bank of China (-0.12%). With the exception of Agricultural Development Bank of China, these bonds are also a constituent of the ATF ALLINDEX Financial and weighed on that index alongside China Great Wall Asset Management whose bonds retreated 0.2%. 

China State Construction Engineering bonds dropped 0.21%. As well as the China Bond 50, the company is also a constituent of the ATF ALLINDEX Enterprise, and weighed on that index along with the bonds of Dalian Port Group, Qingdao City Construction and China Minmetals. These fell 0.17%, 0.51% and 2.88% respectively.

All the constituents of the ATF ALLINDEX Local Governments gauge rose by 0.01%

The same applies for the ATF ALLINDEX Corporates, with only Jizhong Energy bonds posting a slightly higher gain (0.02%). 

The biggest gain recorded across all the indices was posted by Shengjing Bank, a constituent of the ATF ALLINDEX Financial. Its bonds rose 0.18% and closed at 101.05.

China is due to print its year-on-year Industrial Profits data for July on Thursday 27 August. While industrial profits growth might have softened, investors can take comfort from the fact that it remained positive for a third straight month, according to Prakash Sakpal, senior economist Asia at ING, in a research note. He noted that this signals firming activity and the improved prospect of investment spending. 


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