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

Alex Larsen

I've been struggling to find a way to make regular transfers to my Norwegian account from the UK (where I work). Finally I've at least got some pointers for where to start, so I won't have to pay a fortune every time I transfer!

R.H

I am extremely impressed with the Investec currency exchange team service levels, they are fast and efficient. Excellent trading rates and straight talking, what more do you need.
Paying for overseas holidays

PAYING FOR YOUR OVERSEAS HOLIDAYS IN LOCAL CURRENCY

When paying for your dream holiday in the local currency of your destination country, you want to make the most of superior exchange rates and low fees offered by the foreign exchange brokers listed on our site. This will ensure that you save money and your funds are protected.

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