IHS Markit and ChinaBond Pricing Center Launch New Benchmarks for Onshore Chinese Bond Market
New iBoxx™ ChinaBond indices expand foreign access to $12 trillion Chinese bond market
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SHANGHAI--(BUSINESS WIRE)--Business information provider IHS Markit (Nasdaq: INFO) today announced the launch of new onshore Chinese bond market indices in alliance with ChinaBond Pricing Center Co., Ltd. (CBPC), a subsidiary of China Central Depository and Clearing Co., Ltd. (CCDC), the leading pricing provider for the world’s third largest fixed income market.
The new iBoxx ChinaBond indices are the first international, independent fixed income benchmarks using CBPC pricing data, the gold standard in Chinese domestic bond valuations. As the administrator of the indices, IHS Markit will apply its globally-recognized methodologies and maintain them in compliance with IOSCO and European Benchmark Regulation (BMR) standards.
“Partnering with CBPC allows us to develop bond market indices that are unique for their ability to draw on domestic China market data and expertise,” said Shane Akeroyd, president of IHS Markit Asia. “Together, we are confident that we are offering the strongest benchmarks for the onshore Chinese bond market. Bringing our iBoxx methodologies and independence to China will help mutual funds, ETFs and international investors access this large and growing market.”
“These are the first globally-branded onshore Renminbi bond indices, combining iBoxx methodologies with CBPC bond pricing to deliver authoritative performance indicators for investors across the world,” said Bai Weiqun, Chief Supervisor of CCDC and Chairman of CBPC. “As more international investors see opportunities in China, there is a growing need for new and reliable benchmarks, and we are delighted to provide fund managers with these valuable tools for accessing one of the world’s fastest growing markets.”
The first set of indices, the iBoxx ChinaBond Government & Policy Banks Bond Indices, capture the performance of the government and government agency segment of the Chinese domestic bond market. Together, these issuers represent about one quarter of the Chinese bond market. 48 sub-indices by issuer type, issuer and maturity complement the headline index.
In recent years, the Chinese government introduced CIBM Direct and Bond Connect to make it easier for foreign investors to access its bond market. More than 300 offshore financial institutions have invested through the CIBM Direct program, and by the end of August 2018, offshore investors held 1.75 trillion RMB of Chinese bonds. Foreign demand is expected to grow over the next decade, as China continues to open its bond market.
IHS Markit is the leading provider of bond indices in the Asia Pacific region, with more than $6 billion in fixed income ETFs benchmarked to iBoxx indices in the region. In total, IHS Markit administers 3,392 indices covering 14 APAC markets.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
About ChinaBond Pricing Center Co., Ltd. (CBPC)
ChinaBond Pricing Data is provided by ChinaBond Pricing Center Co., Ltd., a subsidiary of China Central Depository and Clearing Co., Ltd. Since the preparation and release of the first China Government Bond yield curve in 1999, ChinaBond Pricing Data Products have developed into a pricing system comprising ChinaBond Yield Curves, ChinaBond Valuation, ChinaBond Index, ChinaBond VaR, ChinaBond Market Implied Rating and My Statistics, reflecting a comprehensive benchmark pricing and risk profile of RMB bond market.
ChinaBond Valuation boasts full coverage of more than 30,000 onshore bonds with a market value of about 65 trillion RMB, as well as coverage of more than 20,000 non-standard financial assets and preferred stocks.
ChinaBond Market Implied Rating covers more than 20,000 onshore RMB credit bonds. China’s first green bond indices and the world’s first climate-related bond index were released by CCDC. Now, more than 1,200 institutions are using ChinaBond Pricing Data Products, representing nearly 100% market share in China. ChinaBond Government Bond Yield Curves are published on the websites of People’s Bank of China, the Ministry of Finance and the Asian Development Bank; particularly, the 3-Month Government Bond Yield Curve has been adopted by IMF in the SDR interest rate basket.
The ChinaBond Indices have become an important indicator for the onshore RMB bond market and the preferred instrument for bond investment tracking and performance evaluation.
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