Sou Hu Cai Jing·2025-09-29 22:16Core Insights - The article highlights a significant trend among major technology companies, both domestic and international, to engage in large-scale bond issuance aimed at funding advancements in AI and cloud computing [1][2] - There is a noticeable shift in the offshore financing strategies of Chinese tech firms, favoring long-term, RMB-denominated debt financing as a primary method [1][2] - The competition in AI is closely tied to capital markets, with companies preferring debt financing over equity to avoid dilution and secure long-term funding at lower costs [2][3] Group 1 - Major tech companies like Oracle, Tencent, Alibaba, and Baidu have initiated substantial bond issuances since mid-September, primarily to invest in AI and cloud technologies [1] - Alibaba's issuance of 17 billion RMB offshore bonds last November marks a significant entry into the offshore RMB bond market, with other firms like Baidu and Tencent following suit [1][2] - The offshore RMB bond market is becoming a crucial long-term financing channel for Chinese tech giants, alleviating funding pressures and expanding market depth [1][2] Group 2 - Debt financing is preferred due to its cost-effectiveness, allowing companies to lock in long-term funds during a low-interest-rate environment while avoiding equity dilution [2] - The advantages of RMB financing are highlighted by the persistent low financing costs and the stability of the RMB exchange rate, which mitigates currency mismatch risks [2] - The demand for offshore bonds is supported by increased domestic investment in offshore assets, driven by the expansion of QDII quotas and the "southbound" bond mechanism [2] Group 3 - The convergence of technology and capital in the AI sector presents a new opportunity for the internationalization of the RMB, potentially enhancing the global appeal of RMB assets [3] - There is an emphasis on the need for reforms in both onshore and offshore RMB markets to keep pace with technological advancements, which could significantly boost the attractiveness of RMB assets globally [3]