By Rebecca Choong Wilkins October 13, 2021

  •  Offerings’ subscription ratio fell to 5.1 times in September
  •  Appetite for Asia deals also waned as contagion worries spread

Investor appetite for Chinese dollar bonds fell in September, as China Evergrande Group’s liquidity woes weigh on the primary market for offshore debt. 

Orders for the offerings were 5.1 times their issuance size last month, the lowest since July and down from a one-year high of 7.7 in August, according to Bloomberg-compiled data of available deal statistics. Dollar bonds also saw waning demand in Asia outside of Japan, as the subscription ratio fell to 4.7 times in September from 6.9. 

Contagion risks are rising as a liquidity crisis at the world’s most indebted developer begins to pressure the broader universe of Asian debt. Signs of stress increased in both China’s onshore and offshore bond market last month, according to Bloomberg’s China Credit Tracker.


China’s weaker-rated borrowers, dominated by property firms, are facing rising refinance risks as borrowing costs soar and demand is expected to remain muted as authorities continue to clamp down on the sector. Yields on junk-rated dollar bonds have reached their highest in about a decade this month. 

relates to China Dollar Bond Demand Slumps as Evergrande Stress Mounts

Orders for notes sold by issuers in Asia excluding China were 4.4 times the issuance size in September, compared to 5.3 the previous month. 

— With assistance by Adrian Yim, Huaiyao Qiu, and Yuyou Cheng