Hunger for dim sum intensifies

An appetite for offshore renminbi bonds is spreading across the globe, most recently to France and South Korea.

The falling cost of swapping offshore renminbi, or CNH, bonds into other currencies has prompted foreign issuers to seek funding in the still-nascent market since the beginning of the year.

China’s recent easing of monetary policy, relaxation in rules governing cross-border currency flows and lack of Chinese borrowers issuance in the offshore market have caused cross-currency swap rates between the dollar and CNH to hit an all-time high in recent weeks.

These factors have made it more attractive for overseas borrowers looking to broaden their funding options into the so-called dim sum bond market as they are able to save approximately 39 basis points to 49bp...

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