Oct 11, 2019 (China Knowledge) - PBoC will not carry out reverse repo, and a total of RMB 30 bln reverse repo will mature today.

The opening price of 1-day inter-bank pledge-style repo (DR001) is 2.55%, and the weighted average price of the previous day was 2.0028%. The opening price of the 7-day inter-bank pledge-style repo (DR007) is 2.65%, and the weighted average price of the previous day was 2.5006%.

Treasury futures opened lower, with the 10-year futures falling by 0.09%, and the 5-year futures falling by 0.03%.

As of 10 Oct, the total fee revenue of IPO underwriting by securities brokerages in 2019 reached RMB 6.95 bln, representing an increase of 53.8% YoY. The top 10 securities brokerages accounted for 63.48% of the total revenue. As for bond underwriting, up until 10 Oct, the total amount of bond underwritten by securities brokerages in 2019 reached RMB 5.41 trln, representing an increase of 43.97% YoY, with the top five securities brokerages accounting for 43.55% of the total market share.

Shanghai Gold Bund Group Development Co., Ltd. announced that the company's net assets at the end of last year amounted to RMB 5.047 bln. As of Sep 2019, the total amount of external guarantees was RMB 1.430 bln, which accounted for 28.33% of the total net assets at the end of last year.

CDB will issue up to RMB 24 bln of additional bonds on 15 Oct, with maturities of 1-year, 5-year and 10-year.

The Ministry of Finance announced the treasury bonds issuance plan for Q4 2019, which includes 22 interest-bearing treasury bonds, 15 discounted treasury bonds and 4 savings treasury bonds.

The yield of interbank coupons edged up slightly in the morning, with the 10-year CDB bond yield up 1.73 basis points to 3.6125%.

According to China Central Depository & Clearing Company (CCDC), the amount of bonds held by foreign institutions in CCDC has been steadily increasing for 10 consecutive months, with a total of RMB 1.79 trln of bonds held in Sep.

With weak economic momentum in the global market and negative interest rates, more investors are looking into Chinese bonds with higher returns and stable attributes, which had increased the foreign capital to China. In September, foreign institutional investors purchased a total of RMB 110.8 bln of bonds in China's inter-bank bond market, a 59% increase MoM.

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