Mainland Investors' Demand For Offshore Dollar Bonds Is Really Strong.

Although cash flows from China have boosted all US dollar debt, the Chinese companies that issue us dollar debt have benefited most, because Chinese investors tend to buy securities that they are familiar with.

Chinese funded enterprises issued $32 billion in the offshore market in the third quarter, hitting a new high in more than a year.

Yields on such bonds have dropped to around 4.07%, close to record lows.

The yuan has fallen 4% against the US dollar this year.

The prospect of further depreciation has prompted Chinese investors to buy US dollar denominated assets.

Research firm zhe Ben investment management consultancy said that as of September 30th, the scale of domestic funds invested through China's qualifying domestic institutional investor (QDII) project overseas bonds increased by more than three times to 17 billion 400 million yuan (2 billion 600 million US dollars).

Haitong Asset Management Co will seize this one.

Soaring opportunities.

Chen Yiping, director of the Fortis fund bond fund, said the company will soon start issuing its US dollar debt fund.

He expects the renminbi to fall by 2%-3% next year.

He said, investors earn money.

The consideration of devaluing profits or diversifying investment risks will go with some US dollar debts.

Mainland Chinese investors bought us $1 billion 690 million in corporate bonds in August, the biggest monthly purchase in 5 years.

Zhe Ben said in August that Chinese investors had spent 90% of overseas investment quotas, which not only exceeded 67% in 2015, but also the highest level in history.

Bai Haifeng, director of the international business division of China Merchants Fund, said: "in the past few years, the sustained and rapid growth of the domestic economy has led to the continuous growth of the high net worth population. The depreciation of the renminbi will raise the demand for some US dollar assets."

Chen Yiping of Haitong said that if the Federal Reserve raised interest rates in December, the US dollar debt would be affected, but the funds from China would protect the US dollar debt of Chinese funded enterprises.

He said the fund will also consider US Treasury bonds because the yield is attractive.

(new wave)