Dim Sum Bond

AAA

DEFINITION of 'Dim Sum Bond'

A bond denominated in Chinese yuan and issued in Hong Kong. Dim sum bonds are attractive to foreign investors who desire exposure to yuan-denominated assets, but are restricted by China's capital controls from investing in domestic Chinese debt. The issuers of dim sum bonds are largely entities based in China or Hong Kong, and occasionally foreign companies. The term is derived from the Chinese cuisine that involves serving a variety of small delicacies and is especially popular in Hong Kong.

INVESTOPEDIA EXPLAINS 'Dim Sum Bond'

The dim sum bond market is still in its infancy but is expected to grow rapidly over time. As of October 2010, only $1.46 billion of dim sum bonds had been issued for the year, amounting to about 1% of $145 billion of yuan-denominated debt issued in mainland China.

RELATED TERMS
  1. Bond Purchase Agreement

    A legally binding document between a bond issuer and an underwriter ...
  2. Eurobond

    A bond issued in a currency other than the currency of the country ...
  3. Samurai Bond

    A yen-denominated bond issued in Tokyo by a non-Japanese company ...
  4. Sushi Bond

    A bond issued by a Japanese issuer in a market outside Japan ...
  5. Bulldog Bond

    A type of bond purchased by buyers interested in earning a revenue ...
  6. Kangaroo Bond

    A type of foreign bond that is issued in the Australian market ...
Related Articles
  1. Why China's Currency Tangos With The ...
    Forex Education

    Why China's Currency Tangos With The ...

  2. Investing In China
    Investing Basics

    Investing In China

  3. Introduction To The Chinese Banking ...
    Personal Finance

    Introduction To The Chinese Banking ...

  4. The Pros And Cons Of A Pegged Exchange ...
    Forex Education

    The Pros And Cons Of A Pegged Exchange ...

comments powered by Disqus
Hot Definitions
  1. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  2. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  5. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  6. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
Trading Center