The number of bonds issued in Taiwan that are denominated in the US dollar and the Chinese renminbi is expected to hit a new high.
So far this year, US$4.7 billion worth of US dollar-denominated bonds have been issued. This is much higher than the value of bonds denominated in the Chinese currency. Last year, the Taiwanese market saw a concentration in Chinese renminbi-denominated bonds.
According to Taiwan’s GreTai Securities Market on Wednesday, the popularity of US dollar-denominated bonds is the result of a policy relaxation. GreTai said the government has loosened restrictions on investment in securities denominated in foreign currencies. It also said retail investors are now allowed to invest in bonds. GreTai said it expects that bonds will continue to be popular well into the end of the year. It also said the issuance of bonds denominated in the US dollar and the Chinese renminbi will hit a historic high in Taiwan.