Chinese Yuan

Massive Increase In Chinese Companies Fundraising Overseas

Chinese companies have raised $52.6 billion US dollars via bond issues in the first quarter of 2017 – a 72% increase from the previous quarter, and five times more than Q1 2016, according to Dealogic data, Netral News reports.

The reason? The Chinese government are making it harder and harder for Chinese firms to move money overseas, a switch in policy that is designed to protect “overheated” sectors such as real estate. As overseas fundraising is rising, domestic debt issuances have fallen 64% year on year, to $91 billion.

Since companies can no longer move their Yuan overseas, many have adopted a strategy of raising money in the US dollar markets, to fund acquisitions, find financing, lend to smaller investors or even use to cover bonds that are falling due.

This has led to concerns that risky issuances are being priced with yields that are too low – since the demand for these bonds – particularly from Chinese investors that have stashed money overseas – is high.

Companies that have issued debt – even whilst their domestic reserves are at high levels, include Evergrande, who priced three dollar bonds in Hong Kong within the space of a week for a total of $2.5 billion, Lenovo, who have raised $500m of bonds with a 3.875% coupon and $1bn of 5.375% perpetual with no maturity dates.

In 2014, Lenovo issued a promissory note for $2.91 billion to Google to pay for its acquisition of Motorola Mobility Holdings, and it is thought that the recent bond issues will help the company meet its obligations to Google.

Comparison tool

Sending Currency
Buying Currency
Send USD Receive

Latest Articles

Richard Wilson, London

The site was so easy to use and I found how much I could save straight away. Thank you.

Felicity Liebmann

Used your service last week to get travel money from ICE and it all worked beautifully. Very efficient and easy, the cash arrived when it was due so there was no hanging about waiting or anxiety about it not arriving when promised.
purchasing overseas property

OVERSEAS PROPERTY PURCHASES – SAVE ON YOUR PAYMENTS

Explaining how you can make considerable savings by getting better exchange rates and low fees associated when purchasing a property overseas. We show you how to make considerable savings, avoiding poor exchange rates, high fees and the best time to make the transfer.

Paying for your overseas tuition fees in foreign currency

PAYING FOR YOUR EDUCATION ABROAD – OVERSEAS TUITION FEES

Overseas university or secondary school tuition and living expenses are not only expensive but also currency conversion takes large portion of your budgeted funds for your child's studies. We show you how you can make the most of the money you are investing in your child’s future.

Market Insights

Sign up for our newsletter.

Thank You for subscribing to our Newsletter

You have successfully signed up to our Newsletter