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9/15/2020, 1:34 PM (Source: TeleTrader)
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US banks helping labeled Chinese firms sell dollar bonds - report

Top banks from the United States, in particular the Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley, are working with Chinese companies that have been labeled by the Pentagon as linked to Beijing's military to help them sell billions in dollar bonds, the Wall Street Journal reported on Tuesday.

ChemChina issued a bond offering worth $2.4 billion on Monday, while Three Gorges allegedly started selling 5-year and 10-year dollar bonds this week. The Defense Department's designation of ChemChina, Three Gorges and other Chinese firms doesn't include any sanctions. However, experts are concerned that the underwriters of the deals could be dealing with reputational damage if Washington abruptly decides to sanction the companies, the report noted.

The Pentagon issued the designation in August and said it was looking to stop the firms from acquiring US technology and knowledge.

Breaking the News / VP