China Traders Borrow Trillions to Juice Returns in Bond Market

Iqx Trade Group07 Apr, 2023Other

China?s local traders are borrowing a record amount of short-term cash, in a sign they are leveraging up returns in a stable bond market. Turnover in so-called pledged repurchase trades surged past 8 trillion yuan ($1.2 trillion) to an all-time high Thursday, according to calculations by Bloomberg. The figures are used as a gauge of leveraged activity in bonds, even if the transactions also include the day-to-day financing needs of firms in the market.