China bonds climb, equalling longest winning streak

Financials lead gains on news that world’s second biggest bank planned large bond issue on low-cost new technology 

China bonds climb, equalling longest winning streak
The benchmark ATF CB50 Index climbed 0.0%

(ATF) China’s benchmark corporate bond index rose for a 16th day, equalling its longest-ever winning run, led by banks amid reports the world’s second-biggest lender planned a large debt issuance by blockchain.

Returns on the bonds of China Development Bank and Agricultural Development Bank of China climbed after it was reported China Construction Bank would sell $3 billion of bonds on a distributed ledger located in Malaysia. If successful, the sale could usher an era of cheaper debt sales using the the technology that cuts out deal middlemen.

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The ATF China Bond 50 Index climbed 0.01%, matching a winning streak that ended in April. Each of the Allindex sub-indexes, Corporates, Enterprises, Financials and Local Governments, also advanced 0.01%.

The yield on China Development Bank’s 4.24% bond slid 0.01% and that of Agricultural Development Bank of China’s 4.39% security slid 0.05%.

China’s corporates bonds have been climbing as investors have sought higher-yielding assets on optimism spurred by the victory of Democratic challenger Joe Biden in the US election. Hopes for an effective coronavirus vaccine within weeks, China’s indication it will add stimulus to the economy while scrapping fees for overseas investors in the nation’s capital markets have also fuelled the rally.

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