4 billion euros is just the beginning.
Xinhua News Agency, Beijing, November 6th, by wire title: 4 billion euros is just the beginning
Xinhua News Agency reporter Liu Hongxia
On the 5th local time, the Chinese government successfully priced 4 billion euros of sovereign bonds in Paris, France. This is an important action taken by China to support the construction of an international financial center in Paris and to deepen China-France-China-EU financial cooperation.
The issuance of foreign currency sovereign bonds is an important way to integrate into the international financial market system. Whether bonds can be issued, how high interest rates are set, and whether they sell well or not are directly related to the financing credibility of a country.
We are pleased to see that the interest rate on this bond issue is divided into three tranches, between 0.618% and 1.078%, which is a relatively low level. What is even more gratifying is that after the bond issue, international investors quickly launched the "buy" model, with the purchase amount exceeding 20 billion euros, five times the amount issued, of which 57 percent of the investors came from Europe, with a wide range of investors. The geographical distribution is extensive.
This means that the cost of using the euro sovereign bond to finance in China will not be high. This also shows that the majority of international investors recognize China's sovereign bonds and are optimistic about China's economic prospects.
China's fiscal position is sound and its economy has been improving for a long time. At this time, the issuance of euro sovereign bonds can provide accessible and reliable financial products to international investors and inject fresh vitality and impetus into the European financial market.
It is worth noting that this is the first time that China has issued euro sovereign bonds since 2004, and it is also the first Chinese sovereign bond to be issued and listed in France, and it is also the largest single foreign currency sovereign bond issued by China so far. This fully reflects that China cherishes China-France-EU friendship and is willing to promote China-France-EU cooperation with a more open mind and pace.
4 billion euros is just the beginning. The door to China's opening up will only open wider and wider. It is conceivable that in the future, China will continue to make new and greater strides in opening up in various fields, including finance.