1. What is China's dollar debt?
Chinese-funded dollar bonds refer to bonds issued by Chinese-funded enterprises (including domestic enterprises or overseas enterprises or their controlled branches) in the overseas bond market, which are denominated in US dollars and used to repay the principal and interest.
Second, the main differences between China's dollar debt and domestic debt.
1, different distribution methods. After the release of Document 2065438+2044 in September, 2005, China Development and Reform Commission officially cancelled the quota approval system for foreign debts issued by enterprises, and changed it into a medium-and long-term foreign debts pre-registration system with a term exceeding 1 year. Subsequently, Circular No.3 explicitly allowed debtors to directly or indirectly repatriate the funds under domestic insurance and overseas loans through domestic loans and equity investment, and directly canceled the restrictions on the return of funds under domestic insurance and overseas loans in Circular No.29. In 20 17, due to the relaxation of the restrictions on the return of foreign debt funds and the increase in the difficulty of financing domestic bonds, RMB-US dollar bonds ushered in the peak period of issuance. 2. Risk rating methods are different. At present, overseas dollar bonds mainly adopt three internationally recognized rating agencies: S&; P/ Moody's/Fitch; Domestic debt mainly adopts six local rating agencies such as China: Dagong International/China Chengxin/United Credit/Oriental Jincheng/Shanghai New Century/Pengyuan Credit. According to the credit rating, bonds can be divided into investment grade and high-yield grade. Generally speaking, bonds below BBB- are classified as investment-grade bonds, and bonds below BBB- are regarded as high-yield bonds (also known as junk bonds). Investment-grade bonds usually have lower coupon rate and less price fluctuation. High-yield bonds are characterized by high coupon rate and high volatility. 3. The financing cost is different. The issuance of corporate bonds requires the participation of underwriters, lawyers, auditors and trustees. The agency fees of specific projects are influenced by many factors, so I won't go into details here. However, from the perspective of coupon rate, the domestic bonds issued by the same entity in the same period are quite different from those issued by overseas bonds. According to the current data of Bloomberg, more than 10% of China real estate bonds in yield to maturity are $51300 million, and domestic real estate bonds in yield to maturity are about $6.8 billion.
Need to remind you that there are two main ways to directly invest in China dollar bonds. One is to participate in the primary market subscription on the first day of bond issuance, and the other is to buy and sell bonds in the secondary market after successful issuance.