Reuters cited sources saying that China has halted updating daily bond trading data for foreign institutions. Instead, the Chinese regime now only provides daily data to domestic institutional clients.
As Bloomberg reports, this move may raise concerns about transparency in the country’s 20 trillion dollar debt market, which has seen record outflows.
A source told Reuters that the data disappeared following substantial capital outflows and sharp yuan depreciation. He said, “Transaction data for May 12th in the foreign institutions’ category is gone.”
The halt comes at the same time as China Central Depository, and Clearing (CCDC) delayed the release of the monthly bond holdings report.
According to Bloomberg, the missing data adds to investors’ concerns about China’s reliability of economic and other official data as China’s COVID lockdown balanced by concrete policy support drives the market volatility.
The global association of the financial industry (IFF reports, [quote] “April has seen a similar tendency, with Chinese debt suffering an outflow of 2.1 billion dollars and only marginal gains in Chinese equities.” [end quote]
According to data from ChinaBond released on Tuesday, foreign investors sold 42 billion yuan (6.2 billion dollars) of Chinese government bonds in April. The data for April represents the third consecutive month of selling by foreign funds.
Barclays Bank PLC and Natixis SA analysts claim that overseas investors may continue to reduce Chinese bond holdings as the country’s COVID lockdowns weigh on growth and a stronger dollar saps demand for emerging-market debt.