Beijing sold dollar debt directly to US buyers for the first time, with a $6 billion offering drawing record demand on the back of China’s economic recovery from coronavirus, reported the Financial Times.
The bonds sold by China’s finance ministry on Thursday drew orders worth more than $27 billion, or roughly $10 billion more than an offering of the same size last year, according to bankers on the deal.
The Chinese government’s move just weeks before Americans head to the polls for the presidential election shows how tightly the financial systems of the two countries are linked, despite a trade war and tensions over technology and geopolitics, said the FT.
Bankers involved in the bond sale said US demand was strong, with about 15% going to American investors. Investors were attracted in part by the Chinese bonds’ high yields compared to those issued by the US government.