Notwithstanding the robust USD issuance out of China this year, with a record of US$51.7 billion already raised year-to-date, a quick look at order books reveal that Chinese banks took about half of the issued bonds.  Whereas U.S. based asset managers bought an average of 46 percent of Chinese deals in 2014, this number is only 7 percent today.  All this puts the Chinese dollar bond market at risk of investor concentration and potential large scale pull-out of investors from this segment of the market.  In particular, a strengthening Yuan could motivate investors to abandon their dollar holdings for local assets of higher returns.
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