China’s Nascent ‘Free Trade Zone’ Bonds Set for Record Sales

(Bloomberg) -- A once-obscure corner of China’s offshore corporate bond market is buzzing with activity, with issuances set to hit a record this year as investors hungry for yield poured into such debt. 

Firms have sold 29.2 billion yuan ($4.3 billion) of bonds registered in the Shanghai Pilot Free Trade Zone this year, set to cross the record 36 billion yuan issued last year, according to Bloomberg-compiled data. Sales of such bonds rose as yield-hungry investors piled into notes offering a rate of about 4.6% this year, compared to an average 4% for onshore bonds.