China's Foreign Debts Rise to USD1.7 Trillion on Trade Credits, Advances
Xu Wei
/SOURCE : Yicai
China's Foreign Debts Rise to USD1.7 Trillion on Trade Credits, Advances

(Yicai Global) Dec. 29 -- Growth of debt securities, trade credits and advances drove up China's foreign debts to USD1.68 trillion in the third quarter, per data the State Administration of Foreign Exchange released yesterday.

Their total balance climbed 7.5 percent quarter-on-quarter. Debt securities accounted for about 45 percent of the foreign debt increase, indicating that as the interbank bond market opened up, overseas institutions' participation in China's market continued to rise.

Trade credits and advances, which are closely tied to imports and exports, contributed about 20 percent, the SAFE said.

With the implementation of macro-prudential management policy on full-scale cross-border financing and free trade zones to facilitate trade, investment and financing, more enterprises can enjoy broader financing channels and lower financing costs, the SAFE said.

Interbank bond market liberalization, particularly the Bond Connect programs that began linking mainland China and Hong Kong in July, has brought overseas institutions' investments to the mainland market, and such groups have become more willing to buy its bonds, the SAFE added.

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Keywords: Foreign Debt , Bond , SAFE