Chinese offshore bond issuance spurts ahead

Reuters - Chinese companies looking overseas for financing. Big name companies like CNOOC and Tencent actually really securing overseas financing despite a weaker yuan. The popular explanation is that Chinese companies are raising funds overseas despite the weaker yuan because credit conditions are tightening at home. Now there is some merit to that argument, especially if you look at the money raised overseas by Chinese property companies. Now they might indeed be tempted to borrow offshore and bring funds onshore because the domestic banking system is not accommodating them as well as it used to before. Now there is, however, another explanation which Peter Thal Larsen of Breakingviews favors, which is that Chinese companies are rapidly globalizing buying assets abroad. And so, they legitimately require foreign currency financing, and therefore they are heading overseas.