Media365
China is set to raise about 15.5 billion yuan (US$2.3 billion) from a sovereign bond sale in Hong Kong next week, the largest such issuance since 2023 as global investors seek refuge in Chinese assets amid the US-Iran conflict.
The Ministry of Finance said in a statement on Wednesday it would offer the yuan-denominated bonds – its second offshore issuance this year – on April 22. Further details will be released through the Hong Kong Monetary Authority’s Central Moneymarkets Unit.
The planned sale exceeds February’s 14 billion yuan offering and underscores Beijing’s continued use of Hong Kong as a key offshore funding hub. Such instruments, known as dim sum bonds, are issued outside mainland China but denominated in yuan.
Demand for Chinese assets has strengthened since tensions in the Middle East escalated, with investors viewing the world’s second-largest economy as relatively insulated from energy shocks thanks to its renewable capacity and vast oil reserves.
That divergence is evident in bond markets. China’s 10-year government bond has risen, pushing the yield down 2.6 basis points to 1.783 per cent, while the US 10-year Treasury yield has climbed 31 basis points amid inflation fears triggered by oil price volatility.
Currency markets tell a similar story. The yuan has gained about 0.7 per cent against the US dollar since early March, making it the only major Asian currency to appreciate over the period. Equities, however, have been more subdued: the CSI 300 Index has been largely flat, while the Hang Seng Index has slipped about 2 per cent.
