China Dollar-Loan Market Tanks 62% This Year Amid Trade War

Syndicated-loan volume hits 2012 low; local bond sales surge
Uncertainty has been holding back firms’ spending plans: Citi

Commuters in the Pudong Business Area of Shanghai as Plenum Concludes — Photographer: Qilai Shen/Bloomberg

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By Carol Zhong and Annie Lee

May 21, 2019 at 9:30 PM UTC

Updated on

May 22, 2019 at 3:03 AM UTC

This article is for subscribers only.

Dollar loans to Chinese borrowers have cratered this year, thanks to both a decline in demand and increased wariness among lenders amid escalating U.S.-China tensions.

Syndicated dollar loan issuance to Chinese borrowers has tumbled 62% from the start of the year through May 17, to $7.3 billion, according to data compiled by Bloomberg. That’s the lowest level since 2012.