Issuers return to ‘dim sum’ bond market

• Published 15 Feb 2012

In recent weeks, a handful of multinational corporations have tapped the offshore ‘dim sum’ bond market in Hong Kong even despite tightening liquidity, rising funding costs. The return of international issuers also comes in spite of concerns that slower renminbi appreciation will weigh on investor appetite. We think that this steady supply by foreign issuers is not surprising: for multinationals with mainland subsidiaries, it is still much more cost-effective to raise renminbi offshore than to borrow from onshore banks.