What is planned
China's finance ministry said it will offer as much as $2 billion of dollar-denominated sovereign bonds in Hong Kong in the week of Nov. 16.
The issuance streak
Beijing has stepped up offshore activity this year to reach a wider pool of global investors and cement its profile across overseas capital markets. This week, the government sold a 4 billion yuan green sovereign bond in Canada that garnered upwards of 54.04 billion yuan in demand - around 13.5 times the deal size. Earlier in the year, it completed a 6 billion yuan green sovereign offering in Hong Kong, its first such sale in the city, then secured €5 billion via a euro issue in June, and later executed a 6 billion yuan transaction in Macau in August.
The dollar program in context
Since 2017, China has been a regular dollar sovereign issuer, pausing only in 2022 and 2023, according to Bloomberg data. Its most recent dollar sale was about a year ago and raised $4 billion, and half of those notes were priced with no yield premium versus US Treasuries, even though international firms rate the US higher than China.
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Why it matters for your portfolio
China's plan adds to a run of offshore borrowing and keeps its dollar program in view for global bond buyers. One marker from last year's dollar sale stands out for pricing context: half the notes carried no yield premium to US Treasuries despite the US holding a higher credit rating.
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