China’s two-year government bonds worth 2 billion yuan (US$308.9 million) are expected to be oversubscribed amid strong demand.
BOC Hong Kong (Holdings) Ltd. (02388.HK) said the total subscription amount rose 70 percent from last year’s batch with the number of subscribers up 90 percent, the Hong Kong Economic Journal reported on Tuesday.
The average amount of subscription, however, was 10 percent below last year’s level, said Ko Yiu-ho, the bank’s global market investment products consultant and head of investment strategy.
Most of the subscribers of the retail tranche of the bonds, which bear a 3.45 percent coupon rate, preferred small amounts, Ko said, adding that investors appear optimistic that the downtrend in the renminbi’s value will not last long.
Meanwhile, Industrial and Commercial Bank of China (Asia) Ltd. (00349.HK) said subscription has surpassed 10 million yuan with the average amount of 200,000 yuan.
At Dah Sing Bank Ltd. (02356.HK), the total subscription amount doubled while the number of subscribers surged 80 percent.
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