Cheap yuan catapults China to second-biggest trade funding currency

Chinese Yuan and U.S. dollar banknotes are seen in this illustration taken March 10, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights SHANGHAI/SINGAPORE, Nov 17 (Reuters) – Global companies are making a beeline for China’s debt markets, issuing record amounts of yuan-denominated bonds and borrowing heavily from mainland banks, capitalising on rock-bottom yuan interest rates as funding costs elsewhere jump. Companies and banks are raising record amounts of cash through yuan bonds issued in mainland China and in Hong Kong, known as panda and dim sum bonds, respectively. The surge in their borrowing from Chinese banks has catapulted the yuan past…