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Hong Kong's dim sum bond market is anticipated to mark a new peak in annual issuances this year

Financial specialists attribute the growth to cost benefits for issuers and structural improvements enhancing the diversification of investors.

, and Administrator

2025 September 17 . 9:39 PM

2 min read

Hong Kong's bond market specializing in dim sum, set for a new yearly high in issuances this year

Hong Kong's dim sum bond market is anticipated to mark a new peak in annual issuances this year

Hong Kong's offshore yuan bond market is on a remarkable trajectory, with signs pointing towards a record-breaking year. According to Standard Chartered, the market has been exceptionally active this year, with a year-to-date issuance of around 525 billion yuan—an 8% increase compared to the previous year.

This growth is significant, as the dim sum bond market plays a crucial role in Hong Kong's ambition to become a fundraising hub beyond equities. Dim sum bonds, denominated in yuan and issued outside the mainland, have evolved into a key pillar of Beijing's effort to internationalise its currency.

The latest boom in the dim sum bond market is attributed to several factors. Samuel Fischer, head of China debt capital markets at Deutsche Bank, highlighted attractive funding levels and increased liquidity in the offshore yuan dim sum market. He attributed this to the southbound Bond Connect, which allows mainland Chinese investors to buy Hong Kong stocks, and global investor interest.

The growth of the dim sum bond market also reflects structural reforms that have helped broaden the investor base. In July, Hong Kong expanded access to the Bond Connect to include securities firms, insurers, and wealth managers, contributing to the market's expansion.

Notable corporate issuers in the market this year include some of mainland China's largest technology firms. Baidu and Meituan are among the companies preparing for deals in Hong Kong's offshore yuan bond market. The largest Chinese technology companies investing heavily in AI and raising significant funds through bond and equity markets are Alibaba, Tencent, Baidu, and JD.com. These firms have made headlines with notable offerings, such as Alibaba's $3.2 billion convertible bond offering and Tencent's issuance of 9 billion yuan dim sum bonds.

Deutsche Bank estimates that the annual issuance in the dim sum market tripled between 2022 and 2024, reaching 1.4 trillion yuan (US$196.5 billion) last year. The dim sum bond market has transitioned from a niche product to a significant part of the financial market.

The growth of the dim sum bond market underscores the increasing global acceptance of the Chinese yuan as a currency for international transactions. As the market continues to grow and evolve, it is expected to set another record in 2025, according to Deutsche Bank's estimates. The future looks bright for Hong Kong's offshore yuan bond market, as it continues to play a crucial role in the internationalisation of the Chinese yuan.