Core Insights - The People's Bank of China (PBOC) Shanghai Headquarters released a report on the interbank bond market for foreign institutions as of September 2025, indicating that foreign institutions held 3.78 trillion yuan in bonds, accounting for approximately 2.2% of the total custody in the interbank bond market [1] Summary by Category Foreign Institution Holdings - As of the end of September 2025, foreign institutions held 2.00 trillion yuan in government bonds, representing 52.9% of their total holdings, 0.86 trillion yuan in interbank certificates of deposit, accounting for 22.8%, 0.77 trillion yuan in policy financial bonds, making up 20.4%, and 0.15 trillion yuan in other types of bonds, which is 3.9% [1] Market Participation - In September, 11 new foreign institutional entities entered the interbank bond market, bringing the total to 1,176 foreign institutions by the end of September. Among these, 612 entered through settlement agent channels, 837 through the "Bond Connect" channel, and 273 utilized both channels [1] Trading Volume - The trading volume of foreign institutions in the interbank bond market was approximately 0.96 trillion yuan in September, with an average daily trading volume of about 41.7 billion yuan [1]

Core Insights - The People's Bank of China Shanghai Headquarters reported that as of September 2025, foreign institutions hold 3.78 trillion yuan in the interbank bond market, accounting for approximately 2.2% of the total custody amount in this market [1] Summary by Category Foreign Holdings - Foreign institutions hold 2.00 trillion yuan in government bonds, representing 52.9% of their total holdings - Holdings in interbank certificates of deposit amount to 0.86 trillion yuan, making up 22.8% - Policy financial bonds held by foreign institutions total 0.77 trillion yuan, which is 20.4% of the total - Other types of bonds held amount to 0.15 trillion yuan, accounting for 3.9% [1] Market Participation - In September, 11 new foreign institutional entities entered the interbank bond market - As of the end of September, there are 1,176 foreign institutional entities in the market - Among these, 612 entered through settlement agency channels, 837 through the Bond Connect channel, and 273 used both channels [1] Trading Volume - In September, the trading volume of foreign institutions in the interbank bond market was approximately 0.96 trillion yuan - The average daily trading volume was around 41.7 billion yuan [1]

Group 1 - As of the end of August, foreign institutions held 3.83 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody amount in the market [1] - Among the types of bonds held by foreign institutions, government bonds amounted to 2.01 trillion yuan, representing 52.5% of the total, while interbank certificates of deposit were 0.91 trillion yuan, making up 23.8%, and policy financial bonds were 0.74 trillion yuan, accounting for 19.3% [1] - In August, one new foreign institution entered the interbank bond market, bringing the total to 1,167 foreign institutions, with 607 entering through direct investment channels and 831 through the "Bond Connect" channel [1] Group 2 - The trading volume of cash bonds by foreign institutions in the interbank bond market in August was approximately 1.15 trillion yuan, with an average daily trading volume of about 546 billion yuan [1]

Core Insights - As of August 2025, foreign institutions hold 3.83 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody amount in this market [1] - Among the types of bonds held by foreign institutions, government bonds amount to 2.01 trillion yuan, representing 52.5% of the total, while interbank certificates of deposit and policy financial bonds account for 23.8% and 19.3% respectively [1] Summary by Category Foreign Institution Participation - In August, one new foreign institution entered the interbank bond market, bringing the total to 1,167 foreign institutions [1] - Out of these, 607 entered through direct investment channels, 831 through the "Bond Connect" channel, and 271 utilized both channels [1] Trading Volume - In August, the trading volume of foreign institutions in the interbank bond market was approximately 1.15 trillion yuan, with an average daily trading volume of about 546 billion yuan [1]

Core Insights - As of the end of July 2025, foreign institutions held 3.93 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody volume in this market [1] - Among the types of bonds held by foreign institutions, government bonds amounted to 2.02 trillion yuan, representing 51.4% of the total, while interbank certificates of deposit and policy financial bonds accounted for 24.9% and 19.3% respectively [1] - In July, three new foreign institutional entities entered the interbank bond market, bringing the total to 1,171 foreign institutions, with 608 entering through direct investment channels and 834 through the "Bond Connect" channel [1] - The trading volume of foreign institutions in the interbank bond market was approximately 1.44 trillion yuan in July, with an average daily trading volume of about 628 billion yuan [1]

Core Insights - As of the end of July 2025, foreign institutions hold 3.93 trillion yuan in the interbank bond market, accounting for approximately 2.3% of the total custody amount in this market [1] - Among the types of bonds held by foreign institutions, government bonds amount to 2.02 trillion yuan, representing 51.4% of the total, while interbank certificates of deposit and policy financial bonds account for 0.98 trillion yuan (24.9%) and 0.76 trillion yuan (19.3%) respectively [1] - In July, three new foreign institutional entities entered the interbank bond market, bringing the total to 1,171 foreign institutions by the end of July, with 608 entering through direct investment channels and 834 through the "Bond Connect" channel [1]

Core Viewpoint - The Chinese financial system is resilient and can withstand external uncertainties and pressures, with a focus on self-reliance and proactive policies to maintain stability in the face of global challenges [1][5]. Group 1: Economic Resilience - China's economy is facing "triple pressures," but the financial system is solid and capable of maintaining stability [1]. - The proactive measures taken, such as controlling the pandemic and returning to normal monetary policy, have provided ample space for the financial sector to respond to uncertainties [2]. - The average annual CPI growth in China since 2018 is 2.1%, while the CPI in January 2022 was only 0.9%, indicating manageable inflation compared to developed economies [3]. Group 2: Financial Risk Management - From 2017 to 2021, China dismantled 25 trillion yuan of high-risk shadow banking and dealt with approximately 1.2 trillion yuan of non-performing assets, improving the financial risk landscape [3]. - The real estate sector, previously seen as a significant risk, has shown signs of stabilization due to effective regulatory measures [4]. - The overall financial system is robust, with sufficient capacity to handle internal and external shocks, provided no extreme external events occur [4]. Group 3: Monetary Policy and Market Stability - China's monetary policy has been cautious compared to other major economies, allowing for a stable economic environment despite global tightening [5][6]. - The recent financial data has exceeded market expectations, with new credit and social financing indicators reaching record highs in January [6]. - The "safe haven" status of RMB assets is becoming more pronounced, with foreign institutions continuing to invest heavily in Chinese bonds, expected to reach 700 to 800 billion yuan in 2022 [8]. Group 4: Currency Stability - The RMB exchange rate has remained stable amidst global market fluctuations, reflecting the strength of China's financial system [7]. - In 2021, the RMB appreciated by 2.3% against the USD, showcasing its resilience [7]. - As of January 2022, foreign institutions held 4.07 trillion yuan in the interbank bond market, indicating strong demand for RMB assets [7].

Group 1 - The People's Bank of China Shanghai Headquarters reported that as of the end of May 2025, foreign institutions held 4.35 trillion yuan in the interbank bond market, accounting for approximately 2.6% of the total custody amount in the market [1] - Among the types of bonds held by foreign institutions, government bonds amounted to 2.11 trillion yuan, representing 48.5%; interbank certificates of deposit totaled 1.22 trillion yuan, making up 28.0%; and policy financial bonds reached 0.84 trillion yuan, which is 19.3% [1] - In May, two new foreign institutional entities entered the interbank bond market, bringing the total to 1,169 foreign institutions by the end of May, with 605 entering through direct investment channels and 835 through the "Bond Connect" channel [1] Group 2 - The trading volume of foreign institutions in the interbank bond market in May was approximately 1.48 trillion yuan, with an average daily trading volume of about 777 billion yuan [1]

Core Insights - As of the end of June, foreign institutions held 4.23 trillion yuan in the interbank bond market, a decrease from 4.35 trillion yuan at the end of May [1] Group 1 - The total amount of bonds held by foreign institutions in China's interbank market has decreased by 0.12 trillion yuan month-over-month [1]

Core Insights - As of the end of June 2025, foreign institutions held 4.23 trillion yuan in the interbank bond market, accounting for approximately 2.5% of the total custody volume in this market [1] - Among the types of bonds held by foreign institutions, government bonds amounted to 2.10 trillion yuan, representing 49.6% of the total, while interbank certificates of deposit were 1.15 trillion yuan, making up 27.2%, and policy financial bonds were 0.81 trillion yuan, accounting for 19.1% [1] - In June, one new foreign institution entered the interbank bond market, bringing the total to 1,170 foreign institutions, with 607 entering through direct investment channels and 834 through the "Bond Connect" channel [1] - The trading volume of cash transactions by foreign institutions in the interbank bond market was approximately 1.32 trillion yuan in June, with an average daily trading volume of about 661 billion yuan [1]