Chinese authorities are pursuing more open – and expansionist – policies.
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LONDON: Bank of China Ltd. is heading down the old Silk Road marketing new goods: debut bonds from Saudi Arabia to Kazakhstan.In July alone, the Chinese bank helped a Bulgarian energy company, a Kazakh oil producer and Teva Pharmaceutical Industries Ltd. of Israel sell bonds.It's all part of an expansion strategy to give borrowers access to Bank of China's network in a country of 1.3 billion people, said Sebastian Ha, head of debt syndicate in Hong Kong at Bank of China, which operated in 41 countries and regions outside China. The $350 billion of bonds sold in 2015 were still concentrated among five banks, HSBC Holdings PLC, Citigroup Inc., JPMorgan Chase & Co., Deutsche Bank AG and Bank of America Corp., together commanding 42 percent, according to data compiled by Bloomberg.For Asian investors like Bryan Wang, the push abroad is all about chasing yields. One of the deals he bought into was Qatar's record $9 billion sale of bonds in May, which included a 10-year tranche that priced to yield 3.37 percent, a premium of 150 basis points over U.S. Treasurys.
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