China’s bond market witnessed robust activity in May 2025, with total issuances reaching approximately 7.2 trillion yuan (about US$1 trillion), according to data released by the People’s Bank of China (PBOC).
The strong monthly performance reflects growing investor demand and steady economic conditions across key sectors.
Breakdown of Bond Categories
According to the PBOC’s report, treasury bond issuances stood at 1.49 trillion yuan, while local government bonds accounted for 779.44 billion yuan. These figures suggest continued fiscal activity aimed at infrastructure and public development projects.
In the financial sector, financial bond issuances totalled 1.22 trillion yuan, highlighting sustained liquidity provisioning from banks and financial institutions. Corporate credit bond issuances followed closely, reaching 902.27 billion yuan, as enterprises continue to seek capital through debt markets.
Market Size Continues to Expand
By the end of May 2025, the outstanding volume of bonds held in custody across China’s markets reached 187.2 trillion yuan, reaffirming the country’s position as one of the world’s largest fixed-income markets.
The data comes amid stable macroeconomic policies and growing appetite for yuan-denominated debt instruments, which are increasingly gaining traction with both domestic and international investors.
