The fact they are bragging about it... we need alternatives but there are lots that do not require us forgetting the multiple times China fucked Canada (Huawei, nortel, secret police stations, harassing dissidents on our soil, etc.)
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Who are the buyers of this bond that is, according to the article, ten times oversubscribed? This seems to be just a propaganda move as not much tangible is said here.
It would also be interesting to know how many tankies bought this bond. I mean, if they are convinced that China's economy is the future, they should do it, right?
Commercial banks bought 45% of the issued amount, outpacing central banks and sovereign wealth funds.
I have read this, but it isn't too revealing. 80 percent of buyers come from Asia, but it's not said which banks and funds exactly.
It's also unclear why they sell a bond in Canada that is listed in Hong Kong.
It's more a propaganda move that anything else imo, also because the offshore RMB bond market is invisibly small (around USD 15 billion in market cap: the onshore market is thousand times larger and exhibits lower correlation to other asset classes afaik, although it's unclear why this is).
This is what dedollarization looks like. They're creating demand for yuan. Buyers (banks and financial institutions) exchange CAD for yuan to buy the bonds. It does also allow financial institutions to diversify their holdings away from the US, which is increasingly seen as untrustworthy as evidenced by the rising 10-year US bond yields. Chinese 10-year bonds are going in the other direction.
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