China Dollar Bond Demand Slumps as Evergrande Stress Mounts
- Offerings’ subscription ratio fell to 5.1 times in September
- Appetite for Asia deals also waned as contagion worries spread
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Investor appetite for Chinese dollar bonds fell in September, as China Evergrande Group’s liquidity woes weigh on the primary market for offshore debt.
Orders for the offerings were 5.1 times their issuance size last month, the lowest since July and down from a one-year high of 7.7 in August, according to Bloomberg-compiled data of available deal statistics. Dollar bonds also saw waning demand in Asia outside of Japan, as the subscription ratio fell to 4.7 times in September from 6.9.