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Surprise China sovereign Euro bond issue nets EUR4 billion
A rare euro-denominated bond sale by China was quickly lapped up by bond investors last week in what was widely expected to be a blowout success – receiving just under €20 billion within a few hours of its opening of which only €4 billion was retained. What was less obvious was the reason for the deal. The money raised is a tiny fraction of China’s $3.1 trillion foreign exchange reserves and a drop in the $13 trillion economy – so why bother? The timing is uncanny – the world’s two biggest economies are embroiled in a 16-month trade dispute and this week French President Emmanuel Macron signed major trade ... (full story)