China's euro bond issuance in Luxembourg to boost financial cooperation with Europe: bank executives

China's issuance of its first euro-denominated sovereign bonds in Luxembourg is expected to boost China-Europe cooperation in finance, offer a new option for international investors to allocate their assets, and help Chinese firms to reduce overseas financing costs, according to bank executives.

The Chinese Ministry of Finance announced on Wednesday that it has successfully issued euro-denominated sovereign bonds worth four billion euros (about 4.61 billion U.S. dollars) in Luxembourg on Tuesday. 

Of the total, the issuance of four-year bonds stood at two billion euros in value with a yield of 2.401 percent, and the issuance of seven-year bonds totaled two billion euros with a yield of 2.702 percent, the ministry said in a statement on its website. 

The bonds were warmly received by the market, with international investors subscribing enthusiastically. Total subscription reached 100.1 billion euros, 25 times the issuance amount.

"The successful issuance of the bonds closely links Euro funds with China's development needs, representing a successful practice in deepening China-Europe financial cooperation," said Cao Jin, manager of the Investment Banking Department at Bank of Communications (Luxembourg).

The issuance of the bonds has diversified the investor base in both geography and type, according to the finance ministry.

By region, European and Asian investors accounted for 51 percent and 35 percent of total subscription, while Middle Eastern and offshore U.S. investors accounted for 8 percent and 6 percent, respectively.

By investor type, sovereign institutions accounted for 26 percent of the investor base, while funds and asset management institutions, banking and insurance institutions, and dealers represented 39 percent, 32 percent and 3 percent, respectively.

"The Ministry of Finance's issuance of euro-denominated sovereign bonds in Luxembourg is aimed at improving the euro yield curve and enriching the asset allocation basket for international investors. This also provides an authoritative market pricing benchmark for subsequent issuance of euro sovereign bonds by Chinese enterprises in the European market, helping to reduce the overseas financing costs for Chinese companies," said Liu Wei, manager of the Investment Banking Department at Bank of China (Luxembourg) Limited.

Nicolo Salsano, CEO for Europe at Standard Chartered, said he looks forward to a deepened trade partnership between China and Europe following the bond issurance.

"The trade between China and Europe has gone from strength to strength over the last decades, with China being a key importer for Europe and obviously China also being a key export destination for European corporates. So the economic partnership is a huge importance for Europe and for China also and we certainly look forward to continued strength of that very important trade relation," said Salsano.

China's euro bond issuance in Luxembourg to boost financial cooperation with Europe: bank executives

China's Minister of Commerce Wang Wentao outlined the key priorities of the 32nd Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade Meeting, which opened on Friday in Suzhou, East China's Jiangsu province.

In an interview with CGTN ahead of the two-day meeting, Wang said free trade, digital cooperation and green economy are high on the agenda of the meeting.

"The key areas include advancing regional economic integration and the Free Trade Area of the Asia-Pacific, supporting the World Trade Organization (WTO) in strengthening digital cooperation and developing green economy. At present, the international situation is marked by intertwined turbulence and chaos, with intensified geopolitical instability. The rise of unilateralism and protectionism poses serious challenges to the international economic and trade order, disrupting global and Asia-Pacific development. Against this backdrop, all parties have higher expectations for this trade ministers' meeting, hoping that it can build consensus and deliver outcomes," Wang said.

This year marks China's third time hosting the APEC meetings and the 35th anniversary of its membership.

By 2025, China had become the largest trading partner of 13 APEC economies. Trade between China and APEC economies reached 3.7 trillion U.S. dollars, accounting for 57.8 percent of China's total foreign trade.

China has signed 24 free trade agreements or economic and trade arrangements with 31 countries and regions, including 15 APEC economies. In recent years, China has also completed upgrades of free trade agreements with APEC economies such as Singapore and Peru.

The minister said that China has always been a firm supporter and an important contributor to APEC.

"We have actively shared our vast market and development opportunities with all parties. China's door to the world will only open wider and wider. Facing the common challenges, China will continue to fulfill its responsibilities as a major country, further deepen reform, expand high-standard opening-up, and continue to provide new opportunities for the Asia-Pacific region and the world with its new achievements in Chinese modernization," the minister said.

China's Commerce Minister outlines priorities for 32nd APEC trade ministers' meeting