ATF indices dip on back of financials’ retreat

Bank names weigh on the ATF indices; industrial names also post losses

ATF indices dip on back of financials’ retreat
A bird's-eye view of China National Nuclear Corporation’s ITER megaproject in France. CNNC bonds were among the biggest movers on the China Bond Indexes.

(ATF) Bank names led losses in the ATF indices on Thursday, with only the ATF ALLINDEX Local Governments gauge closing in positive territory, inching up 0.01%. The flagship China Bond 50 index, ATF ALLINDEX Enterprise and Financial lost 0.04%, 0.03% and 0.03%, respectively, while the ATF ALLINDEX Corporates dropped 0.15% on the back of a coupon payment by Beijing Enterprises Group.

Within the China Bond 50 index, losses were seen in the bonds of China Development Bank (-0.38%), Export-Import Bank of China (-0.3%), Bank of Hangzhou (-0.27%), Huishang Bank (-0.16%) and Shanghai Pudong Development Bank (-0.07%).

Shanghai Pudong Development Bank, Huishang Bank and Bank of Hangzhou paper also weighed on the ATF ALLINDEX Financial, along with China Securities and Haitong Securities, which lost 0.57% and 0.42% respectively. Only Shengjin Bank made a gain of any note, rising 0.02%.

CHINA BONDS: China to roll out red carpet for foreign investors in bonds

Chongqing Yufu Assets Management sank 0.48%, and dragged down the ATF ALLINDEX Enterprise, while the bonds of Beijing Enterprises, an investment company, dropped 4.54% and dragged down the ATF ALLINDEX Corporates gauge.

Further losses were seen in the industrial sector, with Wuxi Construction Development paper losing 0.57% and, along with Beijing Enterprises, leading to the fall in the ATF ALLINDEX Corporates. China Merchants Group and China National Nuclear Corporation bonds retreated 0.1% and 0.7% and weighed on both the China Bond 50 and the ATF ALLINDEX Enterprise.

The only notable gains of the day were posted by Datong Coal Mine and Xi’An Hi-tech Holdings. Their bonds gained 0.02%, as they have done each day this week. Both names are constituents of the China Bond 50 index and the ATF ALLINDEX Enterprise.