Chinese firms turn to euro bonds as dollar funding costs rise

Hong Kong

CHINESE companies have boosted their issuance of euro bonds to a record, keen to cut borrowing costs as their US dollar debts get pricier.

Their push into Europe comes as quantitative easing (QE) knocks interest rates there to zero and depresses the euro, letting companies borrow in a cheaper currency to refinance US debt or acquire assets in Europe.

In the past month, four Chinese companies tapped euro bonds for the first time, raising a total of 2.5 billion euros (S$3.9 billion). Only two...

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