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 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 almost 300% of its GDP in 2022, according to the IMF, which warned that the world’s second-largest economy is too reliant on debt-fuelled growth and that the surge in credit could lead to a...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222