The onshore RMB bond market in China posted overall positive returns in June 2026. The wealth index of the ChinaBond New Composite Index rose 0.16% month-on-month, while its net price index edged down 0.06%. The ChinaBond Investment Preferred Composite Index, representing a more investable bond portfolio, saw its wealth index and net price index move by 0.16% and -0.05%, respectively.
By sub-asset class, the ChinaBond Investment Preferred Government Bond Index, Investment Preferred Credit Bond Index, and Investment Preferred Policy Bank Bond Index recorded monthly wealth index returns of 0.16%, 0.18%, and 0.11%, respectively. The Investment Preferred Local Government Bond Index returned 0.08%, and the ChinaBond Interbank ABS Index returned 0.12%.
In the government bond segment, the yield curve showed minor movements. Yields at the short and ultra-long ends edged lower, the term spread of government bonds widened from end-May 2026, while the spread between China Development Bank bonds and government bonds narrowed slightly. At month-end, the 1-year government bond yield stood at 1.1578% and the 10-year at 1.7090%. Among government bond indices, longer maturities performed better, with the ChinaBond Exchange-Traded Government Bond Index, the ChinaBond 10+ Year Government Bond and Policy Bank Bond Index, and the ChinaBond 10-Year Government Bond Index ranking at the top.
In the credit bond market, yields fluctuated slightly and overall wealth index returns stayed positive. The ChinaBond Credit Bond Aggregate Index wealth index rose 0.17%. Using the 3-year segment as an example, the spreads between corporate bond yields of AAA, AAA-, AA+, and AA ratings and government bond yields stood at the 8th, 2nd, 2nd, and 9th percentile of the past three years, respectively. Risk statistics showed no new defaulted issuers during the month.
Thematic bond markets remained stable in size, with positive returns across the board. The wealth index of the ChinaBond Green Bond Composite Index gained 0.21% for the month, with a market capitalization of RMB 1.74 trillion. The ChinaBond Sci-Tech Innovation Bond Composite Index wealth index rose 0.19%, with a market size of RMB 3.61 trillion.
Multi-asset index returns diverged. Equity markets moved higher, with the ChinaBond A-Share Large Cap, Mid Cap, and Small & Mid Cap portfolios posting total returns of 2.72%, 6.70%, and 6.28%, respectively, while the ChinaBond Dividend Free Cash Flow Low Volatility Stock Portfolio fell 8.34%. The gold market retreated significantly, with gold ETFs returning -10.97% for the month. Driven by equities, the ChinaBond Fixed 20/80 Stock-Bond Portfolio Index delivered the highest monthly return of 0.66%.
For the year-to-date through end-June 2026, the onshore bond market advanced, with the ChinaBond New Composite Index up 2.03%. Among credit bond indices, the ChinaBond Preferred Investment Grade Credit Bond Index returned 2.05% year-to-date. Thematic indices saw slightly higher returns from the ChinaBond AAA Sci-Tech Innovation Bond Index. In the multi-asset space, the ChinaBond Dividend Cash Flow High-Grade Stock-Bond-Gold 1% Volatility Control Index returned 1.96% year-to-date.