The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Asia’s local-currency boom is a Chinese story

International banks might not get the rich pickings they crave in the People’s Republic.

Amid all the news last year of markets being shut, of dwindling issuance and of debt bankers being sacked as business dried up, there was one positive story for those paying attention to Asia: the remarkable rise of the region’s local-currency bond markets.

Companies in Asia have been issuing increasing amounts of debt in their domestic currencies for some years but 2008 will be remembered (among other things) as the year when Asia substantively turned away from the G3 markets and looked inwards for money. While capital-raising in the G3 currencies shrank, funding in other currencies in Asia rose from an equivalent of $148 billion to $276 billion. As dollar investors in particular nursed their wounds, investors across Asia turned their eyes inwards to the companies they knew best and bought their debt in their own currencies.

Much of this story was driven by the second remarkable trend in the year’s debt markets: the increasing volume of issuance from Chinese companies in renminbi, a steady trickle that many of the region’s bankers believe heralds the downpour to come when China’s regulators open the markets. To put the figures for local-currency growth above in context, without renminbi issuance Asia’s local-currency debt volume rose from $112 billion to $158 billion.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree