Cheap yuan funding finds more takers

As Hungary embarks on building railways that link car factories to new markets in western Europe, the country is turning to financing in China.

- BLOOMBERG REPORTERS

It’s a similar story in Kazakhstan, where the state-owned oil producer is planning its first yuan bond sale. In Kenya, officials hope to sign a deal to convert its dollar debt for Chinese currency loans in exchange for more time to repay.

Taken together, there’s growing evidence that borrowers across the developing world are experimenting with tapping Chinese markets, in some cases for the first time ever.

While yuan fundraising is still tiny compared with dollars, the shift at the margin is notable at a time when China is seeking to expand its economic influence and erratic US trade policies lead investors to question their dollar holdings.