The offshore renminbi bond market has boomed since the Chinese authorities first allowed domestic banks to issue them in Hong Kong in June 2007. But appetite for the paper — popularly known as ‘dim sum bonds’ — is starting to wane as access to onshore markets becomes easier. To stay relevant, the dim sum market must develop further.
On October 9, the UK announced it was beginning the launch of a yuan-denominated bond, becoming the first sovereign, besides China, to do so. It is spurring talk that this is the death of the US dollar.
Over the past few years, the development of RMB (Chinese Yuan) denominated bonds issued offshore (generally referred to as “Dim Sum bonds” in the capital markets) has seen exponential growth. We examine the drivers of this growth and how the market has developed and benefitted from regulatory influences and market participation.
Bond FInancing for investing purposes is an investment procedure that results in profits which are comparably higher than those offered in the Stock Markets due to the risks involved. For those who are interested in Bond Investing, the best way to do so is by purchasing Individual Bonds, Bond Funds, or Investment Trusts.
