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China Confidential - Premium Investment Insight

Update Alerts

‘Dim sum’ bonds feel the pinch

22 May 2012

The prices of offshore renminbi (CNH) bonds have fallen sharply in recent days on growing worries of a deeper-than-expected economic slowdown in China. This pain is set to continue as investor appetite weakens for the renminbi and as funding costs rise further on tightening CNH liquidity in Hong Kong. We stress that these so-called ‘dim sum’ bonds are particularly vulnerable to a sharp sell-off should sentiment deteriorate further.

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Providing research coverage on asset classes as diverse as chengtou bonds, dim sum bonds, real estate, trust products, underground banking, art and antiques, as well as its traditional equity fund research.

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