China may issue dollar, offshore yuan sovereign bonds this month
China is considering issuing US dollar- and offshore yuan-denominated sovereign bonds as early as this month, Bloomberg reported, citing people familiar with the matter. The move would bolster China's presence in international debt markets and expand the yuan's global use.
China is considering issuing US dollar- and offshore yuan-denominated sovereign bonds as early as this month, in a move that would bolster its presence in international debt markets, Bloomberg reported.
Officials from China's Ministry of Finance have been working with investment banks on the potential offering, the report said, citing people familiar with the matter. Discussions are ongoing and details of the transaction could still change, it added.
Beijing has become increasingly active in offshore debt markets in recent years as it seeks to strengthen ties with global investors and expand the international use of the yuan.
According to data compiled by Bloomberg, China has typically issued dollar-denominated sovereign bonds every year since 2017, with the exceptions of 2022 and 2023.
If finalised, the deal would mark China's first dollar bond sale since it raised US$4 billion last November. Half of last year's offering was priced with zero yield premium over comparable US Treasuries, despite the United States holding a higher credit rating than China from international rating agencies.