** Offshore RMB bond returns were 2.08% for 1H17, as measured by the HSM iBoxx Offshore RMB Bond Index. Lower-quality and short-duration bonds in general outperformed higher-quality and longer-duration ones. In USD terms, offshore RMB bonds returned 4.71% during 1H17, thanks to the appreciation of the RMB against the USD. The new issue market remained subdued in 1H17, as the issuance volume of global offshore RMB bonds (excluding CDs) fell to RMB21bn.   Financials continued to dominate and the 3-year tenor remained the most popular format.

** RMB was firm in July. Offshore RMB new issuance was quiet, while offshore RMB bonds traded higher in the secondary market.

BOCI FI research_RMB monthly_170801-1H17 offshore RMB bond market review.pdf