China’s share of Asian dollar bond issuances has dropped to 46.3% this year, the lowest since 2013. China has typically contributed to over 50% of Asia’s dollar bond issuances in the last 7 years, with a high of 65.9% in 2017. A bulk of Chinese dollar issuances have historically come from the property sector which has seen a drought of deals this time thanks to the crisis in the sector. Bloomberg also adds that other factors like the global tightening of interest rates and strict lockdowns in the country have also contributed to this indirectly. “Some Chinese companies issued ample dollar bonds when liquidity was more relaxed… will find it challenging to attract investors as the liquidity in the market becomes tighter and rising yields have drawn some investors back to the US market”, said Ivan Chung of Moody’s.
China’s Share of Asian Dollar Bond Issuances Drops to a 9Y Low
