China Launches €4 Billion Euro-Denominated Bond Sale Amid Strong Demand
China's Ministry of Finance has begun marketing a new euro-denominated bond sale targeting €4 billion, following a successful $4 billion dollar bond deal that saw overwhelming demand. The offering includes four-year and seven-year tranches, with initial price guidance set at 28 and 38 basis points above mid-swap, respectively.
Investor appetite appears robust, with orders exceeding €50 billion by midday in Hong Kong. The MOVE underscores Beijing's strategy to diversify its funding mix and deepen its sovereign euro yield curve—a critical step for Chinese firms seeking international benchmark rates.
The euro issuance capitalizes on momentum from China's recent dollar bond success, which drew orders 30 times oversubscribed despite U.S. credit dominance. Global investors chasing yield and safety are driving demand, reflecting shifting capital flows in sovereign debt markets.
