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SOE bond gauge climbs as risk bid returns

(ATF) A gauge measuring returns on the bonds of Chinese state-owned enterprises (SOEs) climbed the most in four weeks Wednesday as reflation concerns eased.

The broader non-sovereign market was little changed, reflecting investor reluctance to fully recommit to the world’s second-largest bonds market.

The benchmark ATF China Bond 50 Index was at 106.82, after a brief selloff straddling the weekend saw it shed 0.20%. The Enterprises sub-index climbed 0.03%.

Chinese corporate and local government bonds have rallied in the past three months as a stream of data showed the nation’s economy recovering strongly from the pandemic downturn. Recent reports, however, combined with a global selloff in bonds damped the allure of the debt.

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Mark McCord

Mark McCord is a financial journalist with more than three decades experience writing and editing at global news wires including Bloomberg and AFP, as well as daily newspapers in Hong Kong, Sydney and Melbourne. He has covered some of the biggest breaking news events in recent years including the Enron scandal, the New York terrorist attacks and the Iraq War. He is based in the UK. You can tweet to Mark at @MarkMcC64371550.

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