China plans first dollar bond issuance in three years in Saudi Arabia

China will issue its first US dollar sovereign bonds in three years, choosing Saudi Arabia as the venue. The State Council approved up to $2 billion in dollar debt to be sold in Riyadh next week, marking a shift from previous issuances in Hong Kong.

This decision reflects growing financial ties between China and Saudi Arabia. The Saudi crown prince aims to attract Chinese investment to support his Vision 2030 modernization plan, which seeks to diversify the economy away from oil dependence.

China's move comes as Saudi Arabia increases its own international bond sales to fund large projects. The issuance of dollar bonds in Riyadh is seen as a way to strengthen state-level relations between the two countries.