You are here
The $500 billion market the world never thought it would see
By Chris Anstey and Narae Kim
Bloomberg News
Sunday, July 29, 2018
China used to rail against the outsize role of the U.S. dollar. But in a major turnaround, the world's second-biggest economy has started embracing the currency of its larger rival.
Chinese companies and banks -- and even the government -- sold bonds denominated in dollars at a record pace last year, and underwriters expect that growth to continue for years. The roughly half-trillion-dollar market has two key attractions for China's borrowers. For some, it's an easier place to raise cash than at home -- where regulators are cracking down on leverage. For others, dollars are simply easier to use to fund acquisitions and investments abroad.
... Dispatch continues below ...
A Network of Bullion Dealers Who Bid for Your Business
With a SmartMetals® account from the Hard Assets Alliance, you're always guaranteed the lowest prices for gold, silver, platinum, and palladium. When you buy bullion through your account, the alliance's network of trusted precious metals dealers launches into action -- and you'll be shown the lowest price for your purchase. Also amazing is the low-cost storage available to you in six non-bank vaults around the world.
Click here to learn more:
http://www.hardassetsalliance.com/go/v34pm4/GAT
The upshot: There's a large and growing supply of dollar securities that offer exposure to Chinese companies for investors wary of diving into the country's increasingly accessible yuan -- denominated domestic debt. The offshore bond market is also set to provide a stake in President Xi Jinping's "Belt and Road" initiative (BRI) -- a grand plan that envisions deepening trade and investment ties with countries across the Eurasian landmass and beyond. Bankers see the BRI as a key source of growth in Chinese dollar bonds. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2018-07-29/china-s-huge-u-s-curr...
* * *
Join GATA here:
New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Thursday-Sunday, November 1-4, 2018
http://neworleansconference.com/wp-content/uploads/2018/07/NOIC_2018_Pow...
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
