OREANDA-NEWS. September 18, 2013. In July 2013, financial market performance was sound. Compared with June, bond issuance recovered with the issuance of corporate debenture and net financing through enterprise bond issuing climbing; the inter-bank borrowing and repo transaction volume increased while interest rates fell on the money market; the volume of spot bond transactions increased; the interbank bond index decreased while treasury bond index on the exchange market ascended. The SSE Composite Indices and the stock turnover both rose slightly.

I. Bond Market Issuance and Net Financing through Enterprise Bond Issuing

In July, bond market issuance totalled 952.2 billion yuan accumulatively, up 15.5 percent year on year and 78.2 percent month on month. Among the total, issuance on the interbank bond market was 913.7 billion yuan, up 13.7 percent year on year and 78.2 percent month on month. From January to July, the total bond market issuance was 5.2 trillion yuan, up 20.4 percent year on year, including 5 trillion yuan which was issued on the interbank bond market, up 18.6 percent year on year.

In July, net financing through enterprise bond issuing was 46.1 billion yuan, up 5.1 billion from June, accounting for 5.7 percent of all-system financing aggregate, up 1.7 percentage points from June.

At the end of July, the bonds deposited in the trust depository and clearing companies reached 28.2 trillion yuan, among which, 26.6 trillion yuan of bonds or 94.3 percent was deposited in the China Government Securities Trust Depository and Clearing Co.,Ltd. The deposit volume of debt financing instruments issued by non-financial enterprises was 4.8 trillion yuan.

II. Money Market

In July, the trading volume on the interbank borrowing market was 2.4 trillion yuan with the daily trading volume averaging 104.4 billion yuan, down 51.5 percent year on year, and up 27 percent month on month. Pledged repo transaction volume totalled 12.2 trillion yuan, with the daily transaction volume averaging 532 billion yuan, down 8.9 percent year on year and 15.3 percent month on month. The volume of outright repo transactions was 493.9 billion yuan, with the daily volume averaging 21.5 billion yuan, down 13.8 percent year on year and up 34.8 percent month on month. The turnover of standard bond repo on the exchange market was 7.1 trillion yuan with the daily turnover averaging 307.1 billion yuan, up 85.1 percent year on year and 40.9 percent month on month.

In July, the weighted average interest rate of interbank borrowing was 3.5 percent, down 304 basis points over June, and the weighted average interest rate of pledged repo transactions was 3.6 percent, down 321 basis points from June.

III. Bond Market Transactions

In July, the spot bond transactions on the interbank bond market totalled 1.3 trillion yuan, down 81.4 percent year on year and up 8.5 percent month on month. The spot bond turnover on the exchange market was 141.7 billion yuan, up 63 percent year on year and 12 percent month on month.

At the end of July, the interbank bond index was 147.50 points, down 0.48 points or 0.3 percent from the end of June. The treasury bond index on the exchange market was 138.32 points at the end of the month, up 0.22 points or 0.2 percent from the end of June.

IV. Stock Market Transactions

In July, the SSE A Share Index rose slightly. At the end of July, the Shanghai Stock Exchange Composite Index closed at 1993.80 points, up 14.59 points or 0.7 percent from the end of June. In July, the SSE A Share Market had a average daily turnover of 79.1 billion yuan, up 900 million yuan month on month.