Interest in offshore yuan bonds is expected to increase, CICC says
Investment bank CICC predicts increased interest in offshore yuan bonds in Hong Kong and elsewhere due to the currency's cost efficiency. This trend is expected to attract more Chinese and global issuers and investors.
The prediction follows China's Ministry of Finance issuing 12.5 billion yuan in bonds in Hong Kong. This issuance, part of a 17-year strategy to support Hong Kong as an offshore yuan hub, was oversubscribed, reflecting the demand for yuan financing driven by interest-rate differences between the US and China. Cheaper borrowing costs have already led to a surge in overseas yuan-denominated debt by Chinese issuers, and this interest is expected to remain high.
via SCMP Full Text Feed
Investment bank CICC predicts increased interest in offshore yuan bonds in Hong Kong and elsewhere due to the currency's cost efficiency. This trend is expected to attract more Chinese and global issuers and investors.
The prediction follows China's Ministry of Finance issuing 12.5 billion yuan in bonds in Hong Kong. This issuance, part of a 17-year strategy to support Hong Kong as an offshore yuan hub, was oversubscribed, reflecting the demand for yuan financing driven by interest-rate differences between the US and China. Cheaper borrowing costs have already led to a surge in overseas yuan-denominated debt by Chinese issuers, and this interest is expected to remain high.
via SCMP Full Text Feed
