Synopsis
Dim Sum bonds are offshore renminbi (RMB) bonds, mainly issued in Hong Kong, that allow global borrowers to raise RMB outside China’s capital controls. First popularised in 2010, the market has since grown into a mainstream funding channel for sovereigns, corporates, and financial institutions. Lower Chinese interest rates, stronger RMB liquidity pools, and better hedging tools have taken issuance to record levels and made the market more stable and strategic. Is this the start of a trade where Chinese currency gets accepted more as a medium of exchange? And should they be a bigger worry of President Trump than anything else?
Dim Sum bonds – sometimes misspelt as “dimsim”, but named after the familiar delicacy – are offshore renminbi (RMB) bonds born in Hong Kong and designed to let global borrowers and investors deal in the Chinese currency outside the mainland’s capital controls.They have evolved from a niche experiment in the late 2000s into a mainstream funding market that now sits at the crossroads of trade, finance, and geopolitics. To understand why they
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