In the last two months, overseas bonds issued by Chinese firms see continuous rebound and signs of recovery.

The research team at ANBOUND Consulting suggests that this is related to the devaluation of Renminbi and the increase of the outflow of the capital and the support of national policy is an important factor as well.

This also reflects the wish of China to encourage more capital backflow, reduce the pressure of the decline in foreign reserves and to support the exchange rate of Renminbi.

At the same time, the overseas bonds are often issued by state-owned and listed companies, which reflect serious problems like the decline of property market, slowdown of the real economy and the drop of domestic investment in China.