At the beginning of January 2024, the Ministry of Finance of the People's Republic of China returned to the dollar-denominated bond market after a three-month hiatus. They were able to conduct a dual-tranche placement of government bonds totaling 2 billion US dollars in Saudi Arabia. This became the first Chinese bond placement in the Arab region and its outskirts. The results showed that the total subscription volume amounted to 39.73 billion dollars, which is 19.9 times higher than the initial issuance volume.
The indicator of attracted demand for bonds with a five-year maturity reached 27.1, which became the highest in recent years for global sovereign bonds. At the same time, yields on bonds with three and five years maturity were higher by one and three basis points respectively compared to the yields of the previous issuance.
Mohammed Al-Sayed, head of the Department of Financial Development of the Ministry of Finance of China, noted: "We are pleased to return to the bond market of dollar-denominated securities, and the positive response from investors to our first issuance after the hiatus is encouraging."
