Chinese companies are borrowing less from U.S. bond buyers, as the deep pools of dollars held by investors in Asia means the region can be more self-reliant for hard-currency funding. U.S. buyers took up just 11% of this year’s Chinese dollar bonds by value, BofA Securities data through mid-August shows, down from 20% last year. For central SOEs, the figure tumbled to 4%, from 10% last year and 15% in 2018. “Growing demand out of Asia means that many Chinese SOE issuers no longer require U.S. investor involvement in order to get the best price,” said Mark Reade, head of fixed income research for Mizuho Securities Asia. In addition, Mr. Reade said earlier this year that many U.S. investors were more focused on the higher yields available in their own backyard, after a widespread market selloff.

Source: Wall Street Journal August 28, 2020 09:33 UTC