China Dollar Bond Sales in Worst Start to Year on Yuan Debt Boom

China is leading a broader slump in Asia in dollar bond issuance, hit by a combination of elevated US interest rates, weaker economic conditions and cheaper local funding.

Chinese companies have sold a combined $2.47 billion of US-currency notes so far in 2024, a record low for the same period, according to Bloomberg-compiled data dating back to 2013. It’s a similar picture in ex-Japan Asia, where year-to-date dollar bond offerings total $12.1 billion, the least since 2017.

The worst start to the year for Chinese borrowers reflects both the universal challenge of the Federal Reserve’s historic monetary tightening and global ...