On January 29th, 2016, SHCH officially released China Credit Bond Index. China Credit Bond Index, the first index family published by Shanghai Clearing House, includes SHCH Credit Bond Composite Index, High Grade Credit Bond Index, Medium-High Grade Credit Bond Index, High-Yield Credit Bond Index and Shanghai Credit Bond Index.
These 5 categories are further divided into 19 sub-indices based on bond maturities. Every sub-index reports dirty price index, clean price index and total return index. China Credit Bond Index exhibits characteristics such as accuracy, effectiveness, independence and fairness.
China Credit Bond Index could facilitate credit bonds' issuers and investors to understand the direct financing costs and choose the optimum timing of issuance and investment, therefore promoting the two-way expansion and development of China's credit bonds market. Besides, it further promotes index-linked product innovation, such as developing bond index derivatives based on the risk diversification and perpetuity characteristics of index. It also caters to the needs of long-term risk averse investors, hence promoting multi-level development of credit bonds market. Moreover, the development of China Credit Bond Index and its derivatives could attract more foreign capital and serve the credit bonds market opening-up through enriching the varieties of CNY asset pool. Meanwhile, it promotes information transparency and market stability while providing regulators with effective quantitative references to measure policy impact on the credit bonds market and offering scientific, convenient quantitative indicators to enterprises and researchers.
