Mongolia tastes its first dim sum bond

Hong Kong's dim sum bond market has been growing strongly over the past 36 months.

Issuances for offshore Rmb bonds now exceed Rmb1 trillion -- transitioning from a policy ambition to a commercial solution in less than two decades. Christopher Chu examines the trend, which started in 2007, as part of FA’s 30th anniversary coverage.

The Eurasian Development Bank and Kazakhstan’s Samruk-Kazyna have tapped the offshore Renminbi market, while Uzbekistan has struck its first sukuk listing on AIX.

Corporate issuances are increasing in the offshore Renminbi bond market, despite challenges around rates, liquidity and diversification; Hong Kong is poised to benefit.

As GBA ties grow, Shenzhen's government has issued Rmb4bn of bonds in Hong Kong, and Rmb1bn via a Macau sustainable bond.

The aim is to help firms comply with US withholding tax requirements on foreign persons and entities, as the total issuance for dim sum bonds in 2023 tallied $76 billion in Hong Kong.