23 July 2019

Chinese push Asia bond market to record high, WSJ says

Chinese borrowers are piling into the global debt market in the run-up to the year-end, helping push bond issuance in Asia outside Japan to a record high for a second year in a row, the Wall Street Journal reported Thursday, citing data provider Dealogic. More than US$144 billion of bonds denominated in US dollar, euro and yen had been issued as of Wednesday, topping the US$140.86 billion during all of last year. Asia’s global debt market has boomed over the past two years, jumping more than two-thirds in value from 2011, as global banks scaled back lending in the region due to tighter capital requirements. This has pushed Asian companies, which have traditionally relied on bank loans, to issue bonds to raise cash, the report said. Chinese borrowers have dominated the market this year, raising US$55.33 billion worth of US dollar bonds, up 93 percent from last year and accounting for 41 percent of the total in Asia excluding Japan this year, the report said.

– Contact HKEJ at [email protected]


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