The China offshore bond market was severely hit by a series of defaults and credit events caused by Chinese property developers in the second half of 2021 (2H2021). Developers were virtually facing a shutdown of bond financing channel due to the significant surge in bond yields and the widening spread in coupon rates. As such, China offshore USD bond new issuance dropped by 11.9% to USD165.5 billion for the first ten months in 2021 (10M2021). In particular, the new issuance amount decreased by 30% for the four months ended October in 2H2021, compared with the same period in 2020.