Dim sum bond issuers tiptoe into expensive market

Hong Kong

COMPANIES looking to tap the offshore yuan bond market to refinance maturing debt this quarter will face a market increasingly wary of the Chinese currency, in the biggest test of investor appetite since issuance dropped off in 2015.

Bank of China International's (BOCI) data shows that 52.8 billion yuan (S$11.1 billion) worth of offshore yuan bonds, known as dim sum bonds, will mature in the second quarter - 45 per cent more than the same period last year and 55 per cent higher than the first quarter.