Dim Sum Bonds

I love Blogging….it gives me a chance to share things with people both known and unknown….it also gives me a chance to express my views uninhibitedly….

I came across this term a couple of times on the net and today my friend at work asked me about it so I thought I should blog about it….( also gives me a chance to read up more ! ) . Given the fast growing importance of China and the Yuan (what with all the downgrades and drama faced by Euro zone and USA) it’s fairly important one knows about these bonds….

So for those of you who haven’t heard of this term ‘ Dim Sum Bonds’ (I know it makes me hungry too!) refers to a bond denominated in Chinese Yuan and issued in Hong Kong.

Dim sum bonds are attractive to foreign investors who desire exposure to Yuan-denominated assets, but are restricted by China’s capital controls from investing in domestic Chinese debt.

The issuers of dim sum bonds are largely entities based in China or Hong Kong, and occasionally foreign companies.

Now that that’s done, if any of you want to read up on them and see what’s going on I am copying a few links for you to explore!

 

http://www.economist.com/node/21526380

 

http://www.ft.com/intl/cms/s/0/54b5bc1c-7020-11e0-bea7-00144feabdc0.html#axzz1Vv8qkBYZ

 

http://blogs.ft.com/beyond-brics/2011/07/19/dim-sum-bonds-cake-for-all/#axzz1Vv8vnRNP

 

http://www.moneycontrol.com/news/management/appetite-for-chinas-dimsum-bonds_573686.html

 

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