Core Viewpoint - China's €4 billion (US$4.6 billion) euro-denominated bond sale has achieved record demand, indicating strong investor confidence in its sovereign assets amid a global trend towards diversification [1][4]. Group 1: Demand and Subscription Rates - The bond offering attracted €100.1 billion in orders, which is 25 times the fundraising target, with the seven-year tranche receiving demand 26.5 times its allocation [1][2]. - This issuance marks the highest subscription rates for a euro-denominated bond offering by China, surpassing previous issuances [2]. Group 2: Investor Composition - Investors from Europe, Asia, the Middle East, and offshore US accounted for 51%, 35%, 8%, and 6% of allocations, respectively [2]. - Sovereign entities subscribed 26% of the latest euro bond issuance, while asset and fund managers accounted for 39%, and banks and insurers took 32% [6]. Group 3: Market Context and Confidence - The successful issuance follows a previous oversubscribed US dollar notes sale of US$4 billion, reflecting growing investor confidence in China's assets as trade tensions with the US ease [4]. - The diverse investor base and robust subscription rates indicate a strong vote of confidence in the creditworthiness of the Chinese government [5]. - China's sovereign bonds are viewed as an attractive option for portfolio diversification, particularly in the context of low correlation to global markets [4][7].