Coupon payments drag down bond indices 

Two indices drop, while utilities and financial names lead gains others

Bond payments drag down indices 
Steep Drop: The bonds of GF Securities were among the biggest losers in the ATF China Bond indices.

(ATF) The ATF ALLINDEX Financial and Corporates dropped 0.15% and 0.12% on the back of coupon payments, while the China Bond 50 index and the ATF ALLINDEX Enterprise rose 0.03% and 0.04% respectively, led by gains in utilities and financial debt. The ATF ALLINDEX Local Governments held steady at 0.01%.

The ATF China Bond 50 Index climbed 0.03%

A coupon payment on the bonds of GF Securities caused these to drop 3.41% and weigh on the ATF ALLINDEX Financial, along with losses in the bonds of Huatai Securities (-2.21%), Haitong Securities (-0.71%), and Hua Xia Bank (-0.4%).

The ATF ALLINDEX Corporates Index fell 0.12%

Guangzhou Development District bonds also slipped on the back of a coupon payment, losing 4.52% and dragging down the ATF ALLINDEX Corporates. Further losses were seen in some industrial constituents of the index, with the bonds of Wuxi Construction Development and Henan Water Investment dropping 1.15% and 0.85%. However, gains were seen in other industrial names including Qingdao Coson Development and Henan Transport, whose bonds dropped 0.84% and 0.35%. 

The ATF ALLINDEX Enterprise Index rose 0.03%

Within the China Bond 50 index, the biggest gains were seen in the bonds of utilities company Zhejiang Provincial Energy (0.78%), followed by financial names including Ping An Bank (0.34%), China Development Bank (0.16%), and Agricultural Bank of China (0.14%). The biggest losses were seen in the bonds of Xi’An Hi-Tech Holding (-0.31%) and China Citic Bank (-0.16%), the latter reversing Wednesday’s gains.

The ATF ALLINDEX Financials Index fell 0.15%

Additionally, Xi’An High-Tech Holding was a drag on the ATF ALLINDEX Enterprise, but financial names also boosted this index with gains seen in the bonds of Nanjing State-Owned Assets (0.84%) and Chongqing Yufu Assets Management (0.18%). Energy group Shaanxi Coal and Chemical Industry and utilities company Shenzhen Energy Group supported the index further, rising 0.24% and 0.17%.

The ATF ALLINDEX Local Governments Index was little changed

All the bonds within the ATF ALLINDEX Local Governments lost 0.01%.