Dim Sum Bond Issuance Increases by 46%, Dependence on Dollar Bonds Decreases

The issuance of bonds denominated in Chinese yuan and Hong Kong dollars is increasing due to rising costs of procuring US dollars. According to Standard Chartered, this trend is expected to continue for the remainder of the year. As of August 14, the issuance of Dim Sum bonds reached 683.04 billion yuan, a 46% increase compared to the same period last year. The issuance of Panda bonds rose to 199.68 billion yuan, an 80% increase. The issuance of Wontang bonds in the Hong Kong capital market increased by 76% to 671.42 billion Hong Kong dollars. The yield on US 30-year Treasury bonds has risen to 5.29%, while the yield on Chinese government bonds remains low at 2.18%. This interest rate gap is prompting issuers to seek bonds denominated in other currencies to find lower borrowing costs. The Bond Connect system is also contributing to changes in issuance conditions, and the expansion of Hong Kong dollar bonds is part of this trend. This shift may also impact liquidity in the Asian bond market and foreign currency procurement channels.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.