HONG KONG: China sold 14 billion yuan ($2.1 billion) of yuan-denominated offshore bonds in Hong Kong on Wednesday, the eighth consecutive year the Ministry of Finance (MOF) has tapped the market to encourage its development.
Bonds of various tenors were offered, among which the largest amount sold was 7 billion yuan of three-year bonds at 2.9 percent, according to the Hong Kong Monetary Authority.
The five-year, seven-year, 10-year and 20-year tenors were priced at 3.25 percent, 3.3 percent, 3.38 percent and 3.9 percent, respectively.
The offshore yuan bond, or dim sum bond, market has faced strong headwinds in the past year as Chinese issuers moved to the onshore debt market to raise funds more cheaply.
Outstanding dim sum bonds have shrunk by 10 percent to 742 billion yuan so far this year, according to Standard Chartered. It forecasts a decline of 16-118 percent for the whole year.
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