1/5
This is interesting. According to ANZ, official Russian entities may together account for one quarter of total foreign ownership of China's onshore bonds, or $140 billion, probably mainly in the form of government bonds.
bloomberg.com/news/articles/…
This is interesting. According to ANZ, official Russian entities may together account for one quarter of total foreign ownership of China's onshore bonds, or $140 billion, probably mainly in the form of government bonds.
bloomberg.com/news/articles/…
2/5
It's always hard to get the data to reconcile, but according to ChinaBond, foreigners hold just under $400 billion (roughly 11%) of Chinese government bonds, which comprise the bulk of foreign bond holding in China's onshore markets.
bloomberg.com/news/articles/….
It's always hard to get the data to reconcile, but according to ChinaBond, foreigners hold just under $400 billion (roughly 11%) of Chinese government bonds, which comprise the bulk of foreign bond holding in China's onshore markets.
bloomberg.com/news/articles/….
3/5
This suggests to me that if ANZ's data are correct, official Russian entities own closer to one-third the total foreign ownership. Either way, they hold a large amount.
This suggests to me that if ANZ's data are correct, official Russian entities own closer to one-third the total foreign ownership. Either way, they hold a large amount.
4/5
If Russia were forced to liquidate a portion of their Chinese bonds over the next few months to pay for imports, it would put some downward pressure on the market, but not a lot. Other foreigners have been buying roughly $10-15 billion a month.
If Russia were forced to liquidate a portion of their Chinese bonds over the next few months to pay for imports, it would put some downward pressure on the market, but not a lot. Other foreigners have been buying roughly $10-15 billion a month.
5/5
It would mean, however, a substantial reduction in net inflows into China over the next few months, something I think the PBoC would love to see.
It would mean, however, a substantial reduction in net inflows into China over the next few months, something I think the PBoC would love to see.
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