China Offshore Bond Market 1H2022 Review and 2H2022 Outlook: Embracing the Paradigm Shift

The China offshore USD bond new issuance dropped by 37.3% year-on-year to USD64 billion in 1H2022. The offshore bond issuance was supported by the refinancing needs of LGFVs, but it was hit by the defaults and credit events of Chinese property developers and the Fed rate hike of USD during the period.