China Bond Information Network: The overall wealth index return of the domestic Renminbi bond market in December 2024 has slightly increased, while the scale of the green bond market remains stable.

On January 14, the China Bond Information website released the monthly report for the ChinaBond Index for December 2024. In December, the overall wealth index return of the onshore Renminbi bond market slightly increased. Looking at different types of bonds, the yield of interest rate bonds decreased overall, while the long-term government bonds and policy financial bonds indexes performed well. The yield of credit bonds at various levels decreased slightly, with positive wealth index returns. The wealth index return for credit bonds in various industries was positive, with slight fluctuations in the yield spreads between different industries and government bonds. This month, the net price index and wealth index return for the ChinaBond New Composite Index were 1.46% and 1.69% respectively, while for the ChinaBond Investment Preferred Composite Index, the net price index and wealth index return were 1.42% and 1.64% respectively. The net price index and wealth index return for the ChinaBond Investment Preferred Government Bonds Index were 1.42% and 1.62%, and for the ChinaBond Investment Preferred Credit Bonds Index were 0.67% and 0.91%. This month, there was a slight increase in volatility in the onshore Renminbi bond market, reflected in the monthly standard deviation of approximately 0.127% for the ChinaBond New Composite Wealth Index daily return rate, which increased by 0.085 percentage points from the previous month. Market trading volume slightly increased to around 22.71 trillion yuan. Overall, this month the Chinese green bond market had positive returns. The ChinaBond Chinese Green Bond Index had a wealth index return of 1.81%, showing strong performance in the green bond index. Moreover, the scale of the green bond market remained stable. According to the ChinaBond Chinese Green Bond Index statistics, the market value of "green" bonds was 6.31 trillion yuan, an increase of 2.26% from the previous month. The ChinaBond Green Bond Composite Index, which includes 975 constituent bonds from public issuers of "labeled green" bonds (excluding ABS), covering 406 issuers with a market value of 1.57 trillion yuan. The ChinaBond Carbon Neutral and Green Bond Index had 219 constituent bonds with a market value of 296 billion yuan, showing steady development in the carbon neutral green bond market. Interest Rate Bond Market Review this month At the end of this month, the government bond yield curve overall decreased, with narrowing spreads between the government bond terms and between policy financial bonds and government bonds. In this environment, the overall trend of the Renminbi interest rate bond market reflected by the ChinaBond Total Index Wealth Index increased by 2.01%, with slightly stronger performance in long-term government bond index returns. The ChinaBond Investment Preferred Government Bonds Index overall performed better than the ChinaBond Investment Preferred Policy Financial Bonds Index. This month, the long-term government bond and policy financial bond indices performed well in the interest rate bond index. Credit bond market review this month This month, credit bond yields decreased slightly, and the overall return of the credit bond market was positive. The ChinaBond Credit Bond Total Index Wealth Index increased by 0.70%. Currently, the spreads for credit bonds of various high grades have narrowed. For example, for the more concentrated 3-year term credit bonds, the yield curves at maturity for AAA, AAA-, AA+, and AA grades are at approximately 30%, 30%, 24%, and 14% percentiles, respectively, over the past 10 years. This month, there was slight fluctuation in the yield spreads between different industries and government bonds. The wealth index returns for different industries were positive, with the ChinaBond Highway Industry Credit Bond Index having the highest return at approximately 1.02%. Overall, this month the credit bond index returns were positive. The China Railway Bond Index performed well. In terms of risk statistics, there were no new default issuers this month.