The Asian International Bond Markets: Development and Trends

by Yanqing Jia, Mushtaq Kapasi and Andy Hill

On 29 March, ICMA published the report: The Asian International Bond Markets: Development and Trends This is the third edition of the annual report, providing global market stakeholders with an updated overview of market development and analysis of market events through the end of 2022.

The report is also published in Chinese and was launched at an event hosted by the Hong Kong Monetary Authority on 30 March.

Primary markets

The year 2022 was challenging for the international bond markets in Asia. The interest rate hikes by many central banks around the globe, geopolitical tensions, and sectoral credit events together contributed to the end of more than a decade of issuance growth for international bonds in Asia.

The annual issuance volume of international bonds in Asia declined 44% from the record value of over USD610 billion in 2021 to USD346 billion in 2022, near the level in 2015. Looking at the international issuance in Asia by deal nationality, China accounted for 33% in 2022 and continued to be the largest source of issuance, followed by Japan and South Korea. International issuance volume by South Korean issuers remained relatively resilient compared with other jurisdictions, with USD40 billion in 2022, only a 25% decrease from 2021.

International bond issuance in Asia - by deal nationality

Source: ICMA analysis using Dealogic data (January 2023)