The amount of US dollar bonds issued by Chinese companies in the second quarter of this year fell to the lowest level in 10 years.
According to Bloomberg reported on July 4, the issuance activities of Chinese -funded companies last quarter decreased by 78%year -on -year to $ 8.7 billion (about S $ 11.7 billion).From 2017 to 2021, the distribution amount of each quarter usually exceeds 40 billion US dollars.In contrast, European borrowers' US dollar bond issuance is close to a record level.
While slowing down the US dollar bond transactions, Chinese companies have strengthened borrowing on the shore.According to the data compiled by Bloomberg, the RMB bonds issued in the second quarter increased by 18%to 4.37 trillion yuan, which was the record set in the last three months of 2021.
The issuance of the US dollar bonds of Chinese companies has slowed in the past 18 months. During the period, many central banks in the world have implemented the most aggressive tightening operations in decades, leading to soaring interest rates.However, China has always been an alternative, maintaining interest rates at a low level, and reducing interest rates in June to support economic recovery.
"The market is expected to raise interest rates further, and China will cut interest rates further," said Leonard Law, a senior credit analyst at Lucror Analytics Pte."This makes borrowing more expensive than RMB."
Bloomberg reported that due to the low cost of lending in domestic loan and the continuous economic uncertainty, there was no sign of this trend in the short term.
