Development forum held in Beijing to strengthen China-Zambia partnership in power infrastructure

A forum focusing on Zambia's power development was held in Beijing on Wednesday with over 130 government officials and business leaders, including Zambia's President Hakainde Hichilema attending to share their insights on how to strengthen China-Zambia cooperation in power generation.

The organizer, Power Construction Corporation of China, has implemented nearly 50 infrastructure projects in Zambia in the past 25 years, across a wide range of sectors, including energy, water resources, and municipal infrastructure.

Stressing that the company has utilized its strengths in investment, construction, and operations to collaborate with Zambia on key infrastructure projects, Ding Yanzhang, chairman of Power Construction Corporation of China, said that those efforts have increased local employment, deepened cultural connections between Zambia and China, and contributed to Zambia's sustainable economic and social growth.

"We have leveraged our advantages in investment, construction, and operation to work with Zambia on major infrastructure projects in the country. They boosted local employment and strengthened cultural ties between Zambia and China, which supported Zambia's sustainable economic and social development. Moving forward, China and Zambia will deepen cooperation in energy, power, and infrastructure. This will help accelerate Zambia's industrialization and modernization, setting a new example for cooperation between the two countries," said Ding.

According to Chipoka Mulenga, Minister of Commerce, Trade and Industry of the Republic of Zambia, power generation is crucial for Zambia's development. Collaborating with Chinese entities in this sector, he said, stands to transform the country's economic landscape and drive GDP growth.

"Power is a critical ingredient in developing an economy that we want. So it is for this cause that the emergency power, supply and support that we are looking for to work in partnership with Chinese entities and the Zambian government is critical. It will improve the living standards of now and future generations of our country. And it will change the landscape of the economic performance of our country and the growth of GDP. So it is something that is not just mad talk, but very serious that we want to see it gets done," said the minister.

This year marks the 60th anniversary of the establishment of diplomatic relations between China and Zambia, and it is also the Year of China-Zambia Economic and Trade Cooperation.

Zambia's President Hakainde Hichilema is in Beijing to attend the ongoing 2024 Summit of the Forum on China-Africa Cooperation (FOCAC).

Development forum held in Beijing to strengthen China-Zambia partnership in power infrastructure

China's Ministry of Finance on Wednesday issued 2 billion U.S. dollars worth of sovereign bonds for international investors in Riyadh, the capital of Saudi Arabia.

Of the total, the issuance of three-year bonds stood at 1.25 billion U.S. dollars in value with an interest rate of 4.284 percent, and the issuance of five-year bonds totaled 750 million U.S. dollars with a yield of 4.340 percent.

International investors have shown strong enthusiasm, with the total subscription value amounting to 39.73 billion U.S. dollars, 19.9 times of the issuance amount. In particular, the five-year subscription multiple reached 27.1 times, the highest multiple for global sovereign bonds issued in recent years.

Among the international investors, those from Asia, the Middle East, Europe and the United States accounted for 68 percent, 8 percent, 20 percent and 4 percent, respectively, with the share of Middle Eastern investors reaching a record high.

In terms of investor types, sovereign entities, banks, fund asset management firms, insurance investors and dealer investors accounted for 9 percent, 50 percent, 37 percent, 2 percent and 2 percent, respectively.

"Throughout the issuance process, international investors have actively subscribed to the sovereign bonds. Their geographical distribution is broad, while the types of investors are varied. This fully demonstrates that international investors have high recognition for China's sovereign credit and firm confidence in the long-term high-quality development of China's economy," said Wang Jiaqiang, senior researcher at the Bank of China Research Institute.

The sovereign bonds will be listed on both the Hong Kong Stock Exchange and the Nasdaq Dubai Stock Exchange. This marks the first line of Chinese sovereign bonds to be issued and listed in the Middle East, as well as the first line of Chinese sovereign bonds priced and issued in Saudi Arabia.

Industry insiders say they believe that this issuance will further promote financial exchanges and cooperation between China and Middle East countries and encourage more Chinese institutions to engage in investment and financing activities in the region.

Sovereign bonds are issued by the central government of a sovereign state intending to raise funds to meet the government's fiscal needs. Because the bonds are backed by the credit of the sovereign state, the risk of default is typically low.

China issues 2 billion U.S. dollars of sovereign bonds in Saudi Arabia