China Wealth Fund Issues Record $29 Billion of Bonds This Year

Bloomberg News

China Wealth Fund Issues Record $29 Billion of Bonds This Year
Sovereign Wealth FundDebt SecuritiesCredit Market
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(Bloomberg) -- Central Huijin Investment Ltd., a unit of China’s sovereign wealth fund that has at times bought equity to stabilize the stock market, issued ...

-- Central Huijin Investment Ltd., a unit of China ’s sovereign wealth fund that has at times bought equity to stabilize the stock market , issued bonds that pushed its total local debt sales this year to a record.The firm has now sold 207 billion yuan of notes this year, the most since it first tapped the onshore credit market in 2010. The fresh issuance includes 9 billion yuan of three-year debt securities and 15 billion yuan of five-year bonds, people familiar with the matter said.

Its holdings of trading assets, a term that typically refers to securities held to be resold for profit, increased 388% to 581.8 billion yuan in the first six months of this year, the firm said in its semi-annual report. The fund didn’t reply to a request for comment on the debt offering. Its parent China Investment Corp. has no outstanding bonds.

“Further state-led buying in Chinese stocks could sustain the recovery in risk sentiment,” Chang said.

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