UBS: If the stock market continues to perform well, Chinese companies are likely to see continued growth in overseas convertible bond issuance.

Lu Jiawen, Head of Debt Capital Markets for Greater China at UBS, stated that this year, the issuance volume and trading activity in China's overseas convertible bond market have reached record levels, benefiting from the improvement of the stock market and the reduction in corporate financing costs. If the market maintains a good trend next year, the issuance volume is expected to continue to grow. This year, overseas bond issuance by technology companies has been more active, with companies like Baidu, Tencent, and Meituan issuing bonds. Investor interest is high. Some of the funds raised will be used for AI research and development, business expansion, and overseas development, with potential future demand. Next year, some real estate companies may consider returning to the overseas bond market as their overseas debts mature. The choice of currency for issuance depends on the issuer's currency needs and market conditions, while also controlling the overall average interest rate.