YY returns with $400 million CB

China's YY benefited from buoyant US markets on Tuesday as the Nasdaq-listed internet company raised $400 million from a keenly priced convertible bond.

The company previously tried to raise $250 million through a CB in November but that deal overlapped with a CB from rival Chinese internet company Sina and faced tougher market conditions. Sentiment has improved significantly since then, with many Chinese internet stocks surging to record highs.

YY is not the first to take advantage of this renewed interest. Vipshop, another Chinese Nasdaq-listed company, issued a $550 million CB last week to take advantage of a more-than-doubling of its share price since the start...