Chinese sales, which last attracted about $ 16 billion ($ 18.9 billion) for bonds, were valued at $ 4 billion ($ 4.7 billion) in equity, including five-year debt, with a yield of 0.152%. China also sold 10- and 15-year bonds with yields below 1%.
Investors include central banks, sovereign wealth funds and global asset managers covering Europe, Asia and the United States. European investors account for 85% of 15-year debt and about two-thirds of short-term bonds, according to Deutsche Bank.
“It shows that investors have not yet registered with China and of course there is a shortage of value in these bonds,” said Sam Fischer, head of the capital market of Deutsche Bank.
The sell-off also indicates that investors want to face more of the Chinese economy, which is recovering from the epidemic at a faster pace than Europe and the United States.
The release of the newspaper shows that international investors have confidence in China’s strong economic recovery and future development despite the global epidemic of Covid-19, the statement said.
In a statement posted on its website, the Chinese Ministry of Finance said the bond sale reflects China’s intention and commitment to open up to the outside world and further integrate into international capital markets.
This is China’s second-largest international retail sale in months, after it raised $ 6 billion in October, including US investors. Last November, the country sold euro-denominated bonds for the first time since 2004, according to Allen & Overy, which recommended the auction.
– Shanshan Wang contributes reportinຊ.