Dim Sum Bond

Dim Sum bonds are Chinese yuan (CNH) denominated bonds issued outside mainland China, primarily in Hong Kong. Named after the Cantonese cuisine, these bonds allow international issuers to raise yuan funding and investors to gain exposure to Chinese currency. For example, McDonald’s issued RMB 200 million in Dim Sum bonds, using proceeds for China expansion. The market grew from nothing in 2007 to peak issuance of RMB 400 billion in 2014, though it has since declined due to yuan depreciation concerns and regulatory changes. Issuers include multinationals (accessing yuan for China operations), Chinese companies (raising funds offshore), and sovereigns (British Columbia, Germany). Investors seek yuan appreciation potenti