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China has borrowed almost as cheaply as the US after returning to the global dollar bond market for the first time in three years.
Investors placed nearly $40bn of orders to buy $2bn of bonds issued by China’s finance ministry on Thursday at yields only marginally above equivalent US Treasuries.
The sale took place in Saudi Arabia — a break with a tradition of issuing bonds in Hong Kong — in a sign of Beijing’s push for closer financial links with the oil-rich kingdom. Chinese, US and other global banks arranged the sale.
The issuance “illustrat[es] the confidence of market-oriented investors in Chinese sovereign credit”, said Zhang Xing, head of fixed income in the investment banking department at China International Capital Corp — one of the bookrunning banks.
Zhang added that bidders for the…
