Advances in artificial intelligence and government measures to ease the property crisis boosted confidence, resulting in a rebound in China's $600 billion corporate dollar bond market, Bloomberg News reported Tuesday.
Chinese firms have issued $13 billion in dollar bonds this year--double 2024's total and the highest since 2022, according to the report.
Financial firms and local government financing vehicles dominate issuance, but some property-related companies are returning, Bloomberg wrote.
In the secondary market, Tencent's (HKG:0700) bonds are trading at their tightest spreads in five years, while high-yield dollar bonds have hit a seven-month low in premium, according to the report.
Also, strong investor demand was evident in Beijing Capital Group's $450 million bond sale, priced last week at a lower-than-expected coupon, Bloomberg wrote.
Analysts see continued outperformance in Chinese dollar bonds, but questions remain whether foreign investors will return in force, according to the report.
"Without the comeback of foreign investors, it is hard to say the sentiment has genuinely improved," Bloomberg cited Gary Ng, a senior economist at Natixis, as saying.
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