(New York News) Affected by the Russian and Ukraine War, international investors are rapidly lifting the popular Chinese bond transactions.
According to the Wall Street Journal, foreign investors have purchased bonds from Chinese state -owned banks for many years. These policy banks have provided financing for domestic and overseas dams, highways and airport projects.This RMB valuation bond that facilitates transactions is considered as safe as Chinese sovereign debt, and the interest paid is higher.
Today, Russia's invasion of Ukraine has prompted people to re -consider such bond investment.The United States and its allies have imposed severe sanctions on Russia and continue to aid other countries or institutions in Moscow may face secondary sanctions.
China has three major policy banks. Among them, the country's development banks and China's import and export banks provide a billions of dollars of loans to Russian debtors who need funds in energy projects and other aspects.Since the outbreak of the Ukrainian war, the two banks have basically remained silent about risk exposure in Russia.
Global investors have sold $ 27 billion in bank bonds since February
Since February this year, global investors have sold 27 billion US dollars (the same, about 37.9 billion yuan) Chinese policy bank bonds, which is equivalent to the sixths of the total foreign investors holding the total amount of such debtsone.According to the data of the Central Treasury Registration and Settlement Co., Ltd., the selling speed has accelerated significantly in May.
Since February, RMB bonds have gone through a total of $ 61 billion in outflows. The above selling is part of it, resulting in this situation, partly due to the weak RMB and the advantages of Chinese bonds compared to U.S. bonds.
The Wall Street Journal believes that this indicates that the speed of investors such as investment management institutions such as private sector is faster than public investors such as the central bank.
