Chinese firms’ dollar-denominated bond issuance fell to the lowest level in a decade in the second quarter.
Chinese firms’ dollar-denominated bond issuance hit a ten-year low in the second quarter, with cheap borrowing costs in yuan and continued economic uncertainty, with few catalysts to reverse this trend in the near term.
In the last quarter, activity fell 78 percent from the previous year to $8.7 billion. From 2017 to 2021, quarterly totals regularly exceeded $40 billion. In contrast, dollar bond issuance by European firms is progressing at a record high pace.
Chinese companies slowed dollar bond deals while increasing domestic borrowing. According to the data, issuances in yuan increased 18 percent in the second quarter to 4.37 trillion yuan ($603 billion), following the record set in the last three months of 2021.