(Nov 6): China sold US$4 billion of dollar-denominated bonds, with half of the notes priced at no yield premium versus Treasuries, as easing trade tensions with the US helped boost investor confidence in Asia’s largest economy.
The Ministry of Finance sold US$2 billion of three-year dollar notes at no yield premium, and US$2 billion of five-year bonds priced to yield just two basis points over similar-maturity US Treasuries, according to a statement. Order books topped US$118.2 billion.
“The offer pricing was very attractive versus secondary market trading pricing,” said Xiaojia Zhi, the head of research at Credit Agricole CIB. “It has already rallied significantly.”
Beijing’s typically annual sale of dollar bonds comes as US-China tensions have de-escalated, following a key summit that led to an extended tariff truce. Authorities aim to use the latest issuance to further develop a deeper yield curve that can serve as a pricing benchmark for Chinese companies.
Proceeds from the sale will go towards general government purposes.
See also: China smashes bond sale records with over US$234b of bids
“This is just the Ministry of Finance helping improve the pricing/liquidity of Chinese names in the USD bond market by issuing benchmark bonds regularly,” said Serena Zhou, a senior China economist at Mizuho Securities.
The sale comes amid a steady rebound in dollar-note sales by Chinese firms, after the country’s unprecedented property crisis and the US Federal Reserve’s interest-rate hikes triggered an issuance slump. There’s been about US$90 billion of publicly-announced sales in 2025, heading towards a three-year high, according to data compiled by Bloomberg.
The Finance Ministry almost exactly a year ago sold US$2 billion of three- and five-year bonds at slight premiums to Treasuries amid strong demand largely from Chinese investors seeking higher returns in overseas markets.
See also: Amazon seeks US$12b from first US bond sale in three years — Bloomberg
S&P Global Ratings assigned an A+ long-term foreign-currency issue rating to China’s latest dollar-bond offering.
Uploaded by Tham Yek Lee
