BLOOMBERG has launched its new Kungfu bond offering, a set of tools for global investors tracking USD-denominated bonds issued by Chinese corporates. This new solution will advance the visibility and accessibility of the offshore Chinese dollar bond market, which saw robust issuance in 2017.

Following consultation and a survey with over 400 market participants across Asia, Bloomberg unveiled today “Kungfu bond” as the industry reference for offshore US dollar bonds issued by Chinese companies and financial institutions. China dollar bonds doubled in issuance to US$287 billion in 2017, among which a record of US$148 billion was issued by Chinese corporations, according to Bloomberg data. Eighty percent of surveyed firms are already investing in the Chinese dollar bond market, and almost 30% expect the outlook of the market to overweight in 2018.

“Historic highs in China’s debt capital market are testament to institutional investor confidence in China’s continued economic growth and appetite for Chinese credit exposure,” says Yuan Shu, deputy CEO of Bank of China Hong Kong. “We see growing demand for the Kungfu bond market, an important development in China’s expanding offshore bond market.”

Bloomberg’s Kungfu bond offering includes new benchmark yield curves, real-time news on China’s debt capital market and the Bloomberg Barclays Emerging Market (EM) USD Aggregate China index. The index is a component of the Bloomberg Barclays EM USD Aggregate, allowing investors to understand China USD bond analytics and broad market trends in China.

“The launch of Bloomberg’s Kungfu bond offering provides global investors with in-depth and dedicated data, news and analytics to invest in the offshore Chinese dollar credit market, enabling them to make smarter investment decisions,” says Ee Chuan Ng, Bloomberg’s head of Greater China. “We are proud to be able to play a role in advancing the Kungfu bond market, and further China’s internationalization of its capital market to global investors.”