Global Funds Pile Up Nearly a Trillion Yuan of China Bank Bonds

(Bloomberg) — Foreign investors increased their holdings of short-term bonds issued by Chinese banks to a record high, as attractive rates for swapping dollars continue to juice the returns available on such debt.

The outstanding holdings of Chinese negotiable certificates of deposits (NCD) by overseas institutions reached 972.6 billion yuan ($133.7 billion) in June, according to Shanghai Clearing House data. That made up 22.5% of their overall China bond holdings in the month, according to central bank data Friday.