The China offshore bond market was continuously supported by the refinancing needs of LIDC. However, the tightened policies on the use of proceeds from LIDC bond issuance, ongoing defaults and credit events of Chinese property developers and higher offshore financing costs due to the sharp Fed rate hike led to the decline in the new issuance amount. The China offshore USD bond new issuance dropped by 43.5% year-on-year to USD93.5 billion for the first ten months in 2022 (10M2022).