China’s Ministry of Finance has ordered a dozen Chinese and global investment banks to handle the sale of $3 billion in US dollar bonds later this month. According to the publication, citing sources familiar with the matter, Beijing is expected to market the securities to investors as soon as next week, and sell bonds that mature in five, ten and 30 years, thus becoming a regular sovereign debt issuer. If true, this would mark the second dollar-bond sale for China in a year and the third since 2004.
According to the US Treasury Department, as of July, China ranked first in terms of investments in US bonds at USD 1.171 trillion. Japan was in second place, holding USD 1.035 trillion dollars in bonds, while Ireland secured third place with bonds worth USD 300 billion.
The new developments come amid an escalating trade war between China and the United States, with Beijing hitting back at President Donald Trump’s USD 200 billion of new tariffs with its own duties on USD 60 billion of American goods.
Source : SPUTNIK
Yaang Pipe Industry Co., Limited (www.yaang.com)