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Chinese companies are preparing to raise billions of dollars through offshore bonds


October, 04 2024
watermark Economic news

Chinese companies intend to raise up to $10-15 billion through offshore bonds this quarter.


Such an active placement is due to economic stimulus measures that have reduced the cost of raising capital and increased interest in borrowing. Over the past two weeks, China has launched a massive stimulus program, including lowering interest rates on loans and mortgages in an attempt to revive the real estate sector.


These borrowing volumes will be the highest in three years. Last week, Chinese companies have already raised about $5.9 billion in dollars and Eurobonds, which made it the most active week to raise offshore debt funds in 2024.


Analysts predict that the positive effect of the stimulus measures and the expected reduction in Fed rates will lead companies to seek to enter the market with bond issues in the coming weeks. The Fitch rating agency notes that China's actions to ease credit conditions turned out to be more decisive than expected.


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