The Chinese Finance Ministry issued $ 3 billion sovereign bonds and 5 billion yuan of dim sum bonds in upsized sales in Hong Kong on Thursday, at a time of heightened tensions with its largest trading partner and in the midst of a global markets selloff.
It’s the third US dollar-denominated sovereign bond sales since October 2004.
The ministry sold $1.5 billion 5-year bonds at 3.25 per cent, $1 billion 10-year bonds at 3.5 per cent and $500 million 30-year bonds at 4 per cent.
The cost was as cheap as some of America’s strongest companies, indicating foreign investors remain confident in China’s ability to repay debt, even though economic growth is slowing and the country is trying to keep a lid on corporate-debt levels.
The ministry said the bond issuance attracted more than $13 billion subscription from central banks, sovereign funds, investment banks, commercial banks, issuance companies, asset management companies among others.