China’s top companies have raised a record $14 billion in offshore convertible bonds this year, diversifying funding sources amid high interest rates. According to LSEG data, these bonds accounted for 22% of global deals. Notable transactions include Alibaba Group’s $5 billion raise in May and Ping An Insurance’s recent $3.5 billion deal.
The amount raised from China so far this year is a staggering 1,588% increase from the same period in 2023, when only $829.3 million was raised. This surge is sparking hope for renewed capital market activity, particularly in Hong Kong, where IPOs are at a 15-year low. The previous 12-month high was $10.9 billion in 2021.
Saurabh Dinakar of Morgan Stanley noted that renewed international investor interest is driving this uptick, as confidence in Chinese markets slowly returns post-pandemic. Globally, $64.2 billion worth of convertible bonds have been issued in 2024, with significant increases also seen in Japan.