It seems that despite the recent global economic slowdown and the ongoing trade tensions between the US and China various foreign currencies still has a belief in the dwindling Chinese currency and its economic growth.

Due to the fall in the yield of the global bonds investors desperately tried to buy Chinese sovereign bonds which were on for global sale. The Chinese government is trying to pick up at least $6 billion through the bond sale and thus improve its share of foreign currencies. China’s ministry of finance says that the sale was oversubscribed by at least 3.6 times the original issuance of bonds.

The yields of the bonds have been categorized into four classes starting from 1.929% for a three-year term up to 2.881% for a 20-year term said the officials of the Chinese finance ministry. For the point of view of a foreign investor, this is a very positive think about the Chinese economy despite the tight spreads in the yield categories of the bonds.

Through this sale, China is trying to integrate itself with the global financial markets and sending a strong message to global investors to keep faith in the Chinese economy and invest in China. The move was done by the Chinese finance ministry as China is under pressure from the US to allow the foreign markets to gain more access to China and it requires funds to improve the local market.

It is also to be noted that as the Chinese Yuan grew weaker it turned out to be a cheap option to attract global investors and increase its share of foreign capital. Currently, China’s debt-to-GDP ratio is more than 300% which is abysmally large for a country which has the second-largest economy of the world. But on the other hand, foreign investment in China is not bad with numbers going up to as high as 240 billion Yuan or $34.1 billion this year.