This is what dedollarization looks like. They’re creating demand for yuan. Buyers (banks and financial institutions) exchange CAD for yuan to buy the bonds. It does also allow financial institutions to diversify their holdings away from the US, which is increasingly seen as untrustworthy as evidenced by the rising 10-year US bond yields. Chinese 10-year bonds are going in the other direction.
Who are the buyers of this bond that is, according to the article, ten times oversubscribed? This seems to be just a propaganda move as not much tangible is said here.
It would also be interesting to know how many tankies bought this bond. I mean, if they are convinced that China’s economy is the future, they should do it, right?
Commercial banks bought 45% of the issued amount, outpacing central banks and sovereign wealth funds.
The fact they are bragging about it… we need alternatives but there are lots that do not require us forgetting the multiple times China fucked Canada (Huawei, nortel, secret police stations, harassing dissidents on our soil, etc.)
Nortel was killed by inflated speculation, “contractor collapse”, and the 00s bubble.
