There were only 18 trading days in May 2002. The turnover reached 1.03 trillion yuan with 7,107 deals. The average daily turnover was 56.95 billion yuan, up 20.40 per cent compared with April. After two months' adjustment, market rates tend to be stable, among which the daily weighted average rate of interbank borrowing and repo decreased by 1.90 per cent and 0.05 per cent respectively compared with April. The turnover of bonds continually increased with the average daily turnover up 20.60 per cent over April's figure.
The turnover of interbank deposits increased by 33.87 per cent from the inactive situation in the past months. The daily weighted average interbank deposit rate continuously decreased from 2.184 at the beginning of the month to the lowest of 2.028 on May 30, which reflected the pressure of excessive fund supply.
The turnover of the 7-day sharply increased by 45.91 per cent over April. Overnight remained stable. The 30-day and 90-day jumped by 446.44 per cent and 661.90 per cent respectively compared with April. The turnover of varieties with maturity up to 20 days accounted for 95.83 per cent of the total interbank lending, among which the proportion of the 7-day increased from 70.68 per cent in April to 77.04 per cent in May.
Supported by the bottom line fund cost of institutions, the daily weighted average repo rate was stable in May, falling slightly by 0.05 per cent as compared with April. Currently, the repo rate has fallen to approximately 1.950, and the possibility of further fall is slim. Differing from the interbank funding market, repo trading was hardly affected by the IPOs in the stock market, and the turnover always remained at a rather high level.
The turnover of the 7-day increased by 33.60 per cent over April. Except for that of the 1-month, the turnover of all other varieties fell down to different extents. In May, the proportion of the varieties with a maturity within one month has increased to 98.73 per cent, reflecting the trend of concentrating on short-term varieties. There was no trade of the 6-month, 9-month and 1-year in May.
Bond trading rocketed in May, with the average daily turnover remaining at 2 billion yuan. With the listing of the fourth issue of government bonds on May 21, the daily turnover set a new record of 7.2 billion yuan on the following day. A significant feature in May was that the open market operation of the central bank on each Tuesday was no longer the main stimulator to the increase of turnover, and the daily turnover remained even.
The price of bonds rose as turnover increased. The daily weighted maturity yield fell from 3.044 at the beginning of the month to 2.154 on May 22, and ended up at 2.404 at the end of May.
In May, the structure of the
intra-institution capital flow was basically unchanged, reflecting excessive
fund supply. The net borrowing of insurance companies increased sharply as
compared with April. And the city commercial bank, the investment funds, and
the securities companies were quite active. The policy bank remained the second
net lender after the state-owned commercial bank consecutively after April.
(by Chen Lifeng)