This is China's first issue of non - RMB bonds since 2004, and the 5 - year and 10 - year period accounts for $1 billion each. If it can be released smoothly, it will effectively counter the practice of downgrading China by the international rating agencies. The Chinese government set a preliminary price guideline for the 2 billion dollar sovereign bonds issued in Hongkong. This landmark price range shows a credit risk comparable to that of Goldman Sachs, but lower than that of apple (Apple). This price means that the demand for China's bond issuance may be very strong, though Moodie and Moody's (Standard & Poor's) both have lowered China's sovereign credit rating this year.

China's economic growth this year is faster than expected. Due to the slowdown of credit growth and the acceleration of inflation, the debt burden has also stabilized. According to some estimates, it has even dropped. "Successful issuance of bonds will be a powerful counterattack for international institutions to reduce China's sovereign credit rating," said Li Huiyong, chief economist of Beijing Shenwan Hongyuan       Securities. According to an investment letter read by the financial times, China's Ministry of finance will issue 5 year bonds with a yield of 30-40 basis points higher than the 5 year treasury bonds, and a 10 year bond with a yield of 40-50 basis points higher than that of the 10 year treasury bonds.
   According to the current benchmark yields of US Treasury bonds, this means that the yield of 5 - year bonds is 2.35% to 2.45%, while the yield of 10 - year bonds is 2.83% to 2.93%. 5 - year bonds and 10 - year bonds accounted for $1 billion each.  According to Thomson Reuters (Thomson Reuters) data released by the end of August 2022, Goldman bonds currently yield 2.4%. The yield that Apple has issued about 10 years after its maturity is 3.06%.
   The vast majority of the bonds issued by the Ministry of finance of China are Renminbi denominated bonds, facing domestic investors. Only 2 trillion yuan ($302 billion) is planned for a year alone, and the $20 trillion dollar bond is basically symbolic. Last year, the foreign debt of the Chinese government was $18 billion, equivalent to only 1% of the government's total debt. 85% of these are offshore renminbi debt. Shen Wan Hongyuan said that between 1993 and 2004, China issued 6 billion 700 million dollar denominated bonds through 12 issuing bonds, but since then, it has not issued non RMB bonds.
   Analysts say the latest debt is intended to set bond pricing benchmarks for Chinese companies, which may allow them to borrow at a lower rate of return. Chinese companies are a very active debt - issuing party in the Hongkong dollar bond market.
   HSBC (HSBC), Standard Chartered Bank (Standard Chartered), Deutsche Bank (Deutsche Bank), Citibank (Citibank), CICC (CICC), ICBC (ICBC), China Construction Bank, Agricultural Bank of Chinese (CCB) Chinese (ICBC) and China Bank (BoC) featuring the issuance of the joint lead underwriter and bookkeeping line.
   "This issue shows Chinese accept international investors commitment is China economy, opening up the capital market reform, through the" The Belt and Road 'initiatives to strengthen its connectivity with the world, "Hongkong HSBC CEO Wang Dongsheng said in a statement that he was referring to China set up chain infrastructure in developing countries aspiring plan.