Hong Kong Wins From China Credit Woes as Loans Reach Record
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Hong Kong’s syndicated loan market enjoyed a record first quarter as Chinese companies shunned local financing in favor of cheaper offshore funds.
Lending in the city surged 41 percent to $20.8 billion in the first three months compared with a year earlier, the busiest start since Bloomberg starting tracking the data in 1999. Volumes in China shrank 45 percent to $5.8 billion, the worst first quarter in four years. Onshore borrowing costs for the nation’s top-rated companies jumped 30 basis points to 5.89 percent in March, the biggest monthly rise since November, ChinaBond data show.