(Bloomberg) -- Some Chinese corporate bond yields are on their longest declining streak ever, as government officials prepare to meet to discuss possible stimulus measures for the coming year.
The yield for 5-year AA rated corporate yuan bonds has fallen for a record 20 consecutive trading days. Spreads on the notes tightened the most since 2018 last week, falling by 13.6 basis points, according to Bloomberg-compiled data based on ChinaBond indexes.
The narrowing spreads show the continued allure of China’s onshore credit market as the government ramps up stimulus efforts to boost economic growth. The government is expected to hold meetings this week to hammer out economic targets and plans for 2025, raising expectations that more easing measures are in store.
“The bond market’s overall performance is relatively good recently,” said LV Pin, chief fixed income analyst at Topsperity Securities Co. More money is flowing into wealth management products, contributing to declining yields, he added.
©2024 Bloomberg L.P.
