The Chinese Offshore Renminbi-Denominated Bonds: Dim Sum Bonds

Fung, Hung-Gay; Tzau, Derrick; Yau, Jot

doi:10.2139/ssrn.2080636

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The Chinese Offshore Renminbi-Denominated Bonds: Dim Sum Bonds

24 Pages Posted: 10 Jun 2012

See all articles by Hung-Gay Fung

Hung-Gay Fung

University of Missouri at Saint Louis - College of Business Administration

Jot Yau

Seattle University

Date Written: February 1, 2012

Abstract

China, the second largest economy in the world after the US, has started the process to internationalize its currency, the renminbi (RMB), to become a global reserve currency. To this end, the offshore market for RMB-denominated bonds (dim sum bond) market in Hong Kong has been established to promote the use of RMB in investment outside China. This market has grown rapidly to a size of over 186.8 billion yuan with 329 issues in less than five years. It is likely that this dim sum bond market will continue to grow because of China’s efforts to internationalize its currency as a national policy.

Keywords: RMB internationalization, dim sum bonds, off-shore RMB-denominated bonds

JEL Classification: F15, G15, G38

Suggested Citation: Suggested Citation

Fung, Hung-Gay and Tzau, Derrick and Yau, Jot, The Chinese Offshore Renminbi-Denominated Bonds: Dim Sum Bonds (February 1, 2012). Available at SSRN: https://ssrn.com/abstract=2080636 or http://dx.doi.org/10.2139/ssrn.2080636