Actually, in addition to Chinese institutions and firms, those including
An industry observer pointed out that there were three major reasons for the issuing size of offshore renminbi bonds to rise sharply in January this year. Firstly, the demand for refinancing was huge. Secondly, the interest cost was low. And lastly, there were more investment channels.
Liu Jianheng, a senior economist with the British bank, pointed out that huge bonds with high interest rates would expire and this would cause both firms and commercial banks to issue new bonds in a bid to refinance. Generally speaking, bond issuing cost in offshore markets was 150 to 200 basis points lower than that in the onshore one, thus offshore renminbi bonds were appreciated.
Ou reiterated that there were two major types of foreign issuers. One was firms and through issuing offshore renminbi bonds, they expanded business in the Chinese mainland. They included Fonterra and through issuing five-year offshore renminbi bonds, the firm financed
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