Dim Sum Bonds: The Offshore Renminbi (RMB)-Denominated Bonds

CHAPTER 7

Conclusion

The Hong Kong dim sum bond market is a nascent offshore RMB debt capital market outside mainland China that has experienced a phenomenal growth. As the first offshore market for RMB-denominated capital assets, it has and will continue to play a pivotal role in the internationalization of the RMB. Although recently there have been some offshore RMB activities in London, Taiwan,1 and Singapore, the Hong Kong dim sum bond market still leads the way as the primary offshore RMB bond market.

In this book, we presented the development, opportunities, and challenges of this nascent Asian debt capital market from several vantage points of view. We analyzed the market's supply from the issuer's perspective, demand from the investor's perspective, and development from the Chinese government's and investment bankers' perspective. We envisage the market will continue to grow with challenges along the way. In this final chapter, we conclude by discussing the opportunities and challenges that confront the various dim sum bond market participants. In our opinion, the prospects of the dim sum bond market remain “cautiously optimistic.”

7.1 REVIEW AND PREVIEW OF THE DEVELOPMENT AND GROWTH OF THE DIM SUM BOND MARKET

In Chapter 1, we discussed and presented the various policies of the Chinese government that helped establish and promote the first offshore renminbi (RMB) bond market, that is, the dim sum bond market. We also described developments in various offshore RMB markets, ...