Dim sum bonds are bonds issued outside of China but denominated in Chinese renminbi, rather than the local currency. They are named after

dim sum Dim sum () is a large range of small Chinese dishes that are traditionally enjoyed in restaurants for brunch. Most modern dim sum dishes are commonly associated with Cantonese cuisine, although dim sum dishes also exist in other Chinese cuisi ...

, a popular style of cuisine in southern China.

History and use

The first dim sum bond was issued by the China Development Bank in July 2007. Until July 2010, only Chinese and Hong Kong banks could issue renminbi-denominated bonds;

deregulation Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a r ...

led to the development of an offshore market in renminbi and the internationalization of dim sum bonds. The bonds became more popular as foreign companies sought yuan-denominated assets as the renminbi appreciated in 2011. Although the major market for dim sum bonds is Hong Kong,

China Construction Bank China Construction Bank Corporation (CCB) is one of the "big four" banks in China. In 2015, CCB was the 2nd largest bank in the world by market capitalization and 6th largest company in the world. The bank has approximately 13,629 domestic branc ...

became the first Chinese Bank to issue a renminbi denominated bond in London in November, 2012. This followed similar issues by non-Chinese banks like

ANZ ANZ may refer to: People * Anz (musician), a British DJ and electronic musician Banks * ANZ (bank), Australia and New Zealand Banking Group Limited, the fourth-largest bank in Australia ** ANZ Bank New Zealand, the largest bank in New Zealand * ...

, HSBC and Banco do Brasil earlier in the year. 35.7 billion yuan in dim sum bonds were issued in 2010 and 131 billion in 2011. The first foreign-issued dim sum bond by a nonfinancial company was announced on August 19, 2010 and issued on September 16, 2010 by

McDonald's McDonald's Corporation is an American multinational fast food Fast food is a type of mass-produced food designed for commercial resale, with a strong priority placed on speed of service. It is a commercial term, limited to food sold ...

. On 5 November 2013,

British Columbia British Columbia (commonly abbreviated as BC) is the westernmost Provinces and territories of Canada, province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include ...

finance minister Mike de Jong reported a successful placement of Chinese RMB$2.5bn in dim sum bonds, listed January 14, 2014 on the Luxembourg Stock Exchange. The issue was five times oversubscribed. Some Indian companies participate in the dim sum bond market, one of them being IL & FS Transportation networks (a subsidiary of the giant lender IL & FS Financial Services).

Sources

{{reflist Bonds in foreign currencies Renminbi

History and use

See also

Sources