Core Insights - The report from the Central Securities Depository indicates that as of December 2025, foreign institutions held a total of 2.75 trillion yuan in bonds [1] - The "Global Connect" channel accounted for 2.14 trillion yuan, representing 77.58% of the total holdings [1] Group 1: Bond Holdings - Foreign institutions primarily held government bonds amounting to 2.01 trillion yuan, which is 72.89% of their total holdings [2] - Policy bank bonds held by foreign institutions totaled 712.9 billion yuan, making up 25.9% of the total [2] Group 2: Trading and Settlement - In December 2025, the total trading and settlement volume for foreign institutions at the Central Securities Depository was 1.32 trillion yuan [3] - The "Global Connect" channel had a cash trading and settlement volume of 328.1 billion yuan and a repurchase trading volume of 383.5 billion yuan, totaling 711.6 billion yuan [3] - The "Bond Connect" channel recorded a cash trading and settlement volume of 579.1 billion yuan and a repurchase trading volume of 25.7 billion yuan, totaling 604.8 billion yuan [3] Group 3: Market Participation - As of December 2025, foreign institutions held 3.46 trillion yuan in the interbank bond market, accounting for approximately 2.0% of the total market [6] - Six new foreign institutional entities entered the interbank bond market in December, bringing the total to 1,189 foreign institutions [6]

Core Insights - As of the end of September, the total custody balance of foreign institutions in China's bond market reached 3.8 trillion yuan, accounting for 2.0% of the total custody balance in the market [1] Group 1: Foreign Institutions' Holdings - The custody balance of foreign institutions in the interbank bond market is also 3.8 trillion yuan [1] - Foreign institutions hold 2.0 trillion yuan in government bonds, representing 52.9% of their total holdings [1] - The holdings include 0.9 trillion yuan in interbank certificates of deposit, which accounts for 22.8% [1] - Policy bank bonds held by foreign institutions amount to 0.8 trillion yuan, making up 20.4% of their total holdings [1]

Core Insights - In May, foreign institutional investors in China purchased bonds worth 807.1 billion yuan, while selling bonds amounting to 669.7 billion yuan, resulting in a net purchase of 137.4 billion yuan [1] Group 1: Trading Volume - In May, the total trading volume of cash transactions by foreign institutional investors reached 1,476.8 billion yuan, representing a year-on-year decrease of 13% and a month-on-month decrease of 16% [1] - The trading volume accounted for approximately 5% of the total cash market transaction volume during the same period [1]