Weekly Monitoring Report on Debt Financing Instruments

I. Overview of the Issuance of Debt Financing

The total debt financing instruments of non-financial enterprises (CPs, MTNs, SMECN) issued this week (Dec12-Dec18) reached 29.71billion Yuan. By Dec18, 2011, 1111 enterprises issued debt financing instruments, with the overall volume reaching 5.592968 trillion Yuan; the outstanding balance reached 2.96798trillion Yuan.

16 MTN were issued in total this week with the amount reaching 16.35billion Yuan. 11 CPs were issued in total this week with total amount of 8.36 billion Yuan.

II. Status of Secondary Market Trading

This week (Dec12- Dec18), 17 MTNs began to trade on the secondary market. The total volume of spot trading transactions in the inter-bank market was 1.5316trillion Yuan and the trading volume of the MTN reached 298billion, accounting for 19.5% of the total spot bond transactions in the inter-bank market.

Meanwhile, 14 CPs began to trade on the secondary market this week. The trading volume of the CP on the secondary market was141.66billion Yuan, accounting for9.25% of the total spot bond transactions in the inter-bank market.

Figure 1: Monthly issuance status of debt financing instruments of non-financial enterprises

(Jan 1 st, 2008 –Dec 18th, 2011)

Figure 2: Outstanding balance of debt financing instruments of non-financial enterprises

(May 24th, 2005 –Dec 18th, 2011)

Figure 3: Yield curve for one-year CPs

(January 1 st, 2007 –Dec 18th, 2011)

Figure 4: Yield curve for AAA-rated MTNs (three-year, five-year)

(January 1 st, 2009 –Dec 18th, 2011)