China bond sale may offer relief to indebted SOEs

Investors reckon the $2 billion sovereign bond sale could help other Chinese borrowers lower their funding costs.

China bond sale may offer relief to indebted SOEs

China is returning to the dollar market for the first time since 2004, in a move that could help its state-owned enterprises and quasi-sovereign banks lower their overall funding costs.

A successful debt sale could be a strong retort to the downgrades of China’s sovereign rating by Moody’s in May and SP last month, both citing worries over the country’s alarming debt levels.

China’s total debt is expected to rise to...

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