China primary bond market:

Rising trend in subscription

• New issuance amount: Six real estate firms issued debt in U.S. or Hong Kong dollars in January. Based on BVAL, all issuers traded below par except Smart insight and Guang Tao Investment.
   
• Subscription rates for dollar bonds issued by Chinese entities reached the highest among all Asia-Pacific ex-Japan entities in September 2021, but dropped for the remainder of 2021. 2022 has seen a slight pickup.
   
• Debt issues were again dominated by the industrial sector.

Issuance amount across currencies ($ millions)

Source: Bloomberg Quant Platform (BQuant), Global Data

New issuance subscription by market of risk

Source: Bloomberg Quant Platform (BQuant), Global Data

 

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Debut issue volume by industry

Source: Bloomberg Quant Platform (BQuant), Global Data

China real estate new issuance in January

Source: SRCH <GO>