Data Suspension Highlights Strain in China’s Bond Market

A well-known Chinese financial data provider has stopped publishing statistics that track domestic bond flows, according to several of its clients, just as a strong rally in equities is pressuring the government debt market.

Shanghai Tiantian Fund Sales Corp., which operates a data service for asset managers, did not release its usual daily figures on Thursday, including information on redemptions from fixed-income funds, the clients said. These numbers are widely monitored by traders as a barometer of sentiment in the world’s second-largest bond market. The company has not commented on the matter.

The suspension coincides with a deeper slump in government bonds, with 30-year yields reaching their highest level since November. The selloff has been driven by surging equities, the reinstatement of a value-added tax on certain bond holdings, and proposed changes to mutual fund fees.

The situation echoes an episode two years ago, when investors faced a sudden halt in access to key bond pricing data, sparking concerns over unexpected regulatory shifts.

China’s bond market has been volatile over the past year. After a sharp rally earlier in the year pushed yields to record lows on expectations of easier monetary policy, the recent equity boom has reversed momentum, putting bonds under pressure. Authorities, including the central bank, have responded at times with warnings and liquidity measures to curb sharp price swings seen as a risk to economic stability.