The Chinese government’s fourth sale of yuan-denominated sovereign bonds in Hong Kong this year was vastly overbought, as investors rushed to take advantage of the yield gap with the mainland through a transborder investment channel with the city.
The 9 billion yuan (US$1.3 billion) tranche of bonds, offered with tenures of two years, three years and 10 years, attracted 30.4 billion yuan of bids from investors, according to the Hong Kong branch of Bank of Communications (Bocom), the sole agent of the sale.
The yield on the so-called dim sum bonds were 1.9 per cent, 2 per cent and 2.38 per cent respectively, the Ministry of Finance said in a separate statement in Beijing.
“Amid the current volatile interest rate environment, the yuan has become an important choice for international investors for its stability and resilience,” said Bocom, the sole sales agent for 15 consecutive years. “This successful issuance reflects…
