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
China issues 2 billion U.S. dollars of sovereign bonds in Saudi Arabia
The number of overseas exhibitors participating in the ongoing 15th China International Aviation and Aerospace Exhibition (Airshow China) has jumped 104 percent to a record high of 159 compared with that of the previous edition.
Airshow China, held in Zhuhai, a coastal city of south China's Guangdong Province, kicked off on Tuesday and will last through Sunday.
Romina Di Martino, office manager of Southern China, China-Italy Chamber of Commerce, has already participated in the China Airshow two times, and this year she leads a delegation of five Italian companies to the event.
In an interview with China Media Group (CMG), she said she was impressed with the show's development.
"I think this is the most important exhibition for aircraft companies. This is the third time for me to participate in this event. I think there are a lot more people than two years ago, and I see a lot of companies, and the technology has made a lot of progress. I think it is getting better and better," she said.
This year's airshow features a larger exhibition area and a higher new product launch rate than those of previous years' editions, making it an important platform for exchanges and partnership in the global aerospace industry, and bringing more cooperation possibilities to exhibitors at home and from abroad.
In separate interviews with China Central Television on the sidelines of the airshow, exhibitors said they are pleased to take part in the event.
"It's been a very important and prestigious show for us. So we are very happy and proud to be part of the China Airshow," said Gop Sundararajan, an exhibitor.
"The size of the airshow is surprising. I had no idea it would be this well attended. So many companies here, displaying their capabilities within that aero and defense markets. It's clearly big deal here. It's very exciting to be here," said Jeffrey Heflin, another exhibitor.
A large number of equipment products that debuted at the event left a deep impression on foreign exhibitors. They believe that Chinese products are intelligent and easy to use, are of high-quality and are reliable, which will bring more development opportunities to the global aviation industry.
Many said they look forward to tapping into the Chinese market.
"This is the first time for me and this is the first time CGR is exhibiting to the show. I mean I'm impressed because there are a lot of Chinese customers and suppliers that we don't know. So it's the first time for me to meet these people. The idea is to show and to promote our know-how and to participate and to support the Chinese suppliers on our expertise," said Jean Prosesse, an exhibitor.
"There is a lot of traffic. There is a lot of good conversations that we had. All positive so far, so I look forward to the rest of the day and for tomorrow," said Ali Saleh, another exhibitor.
One-fold more overseas exhibitors attend China Airshow
