In addition to the global issuers, the offshore subsidiaries of Chinese companies have also issued dim sum bonds.
Dim sum bonds provide an investment outlet for yuan that would otherwise be stuck in low-yielding bank deposits.
They recently formed teams dedicated to developing offshore yuan services and can now issue dim sum bonds in London.
Dim sum bonds have been a key part of the experiment.
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Many see dim sum bonds as one of a number of developments that will ultimately lead to the internationalization of the yuan as a global reserve currency.
Since first being introduced in 2010, the issuance of dim sum bonds is increasing rapidly due to the growing amount of RMB that is now circulating in the global economy.
Provided that the issuer receives approval from Chinese regulators to repatriate the yuan that it raises, the issuer may use the proceeds from the sale of dim sum bonds to meet its obligations in China.
The bleaker outlook for the yuan would make investors more cautious about buying assets denominated in the currency, like the dim sum bonds that until recently had been dominated by a desire among global investors to bet on yuan's rise.
For the buyers, obtaining a higher interest rate than is available from bank deposits, as well as the ability to purchase a yuan-denominated security and to benefit from the appreciation of the Chinese currency that many expect in the coming years are the main attractions of dim sum bonds.
Reduced expectations for appreciation have also contributed to a slowdown in the growth of yuan deposits in Hong Kong the only place where the currency can trade freely and have cut demand for yuan-denominated bonds sold in the territory, dubbed "dim sum" bonds.
Separately, HSBC's crosstown rival Standard Chartered sold 1 billion yuan worth of dim-sum bonds in Singapore Monday.
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Dim-sum bonds have been the Chinese government's most visible effort to allow its currency to trade outside the country.
European investors are taking a bigger bite out of dim-sum bonds, giving a fillip to the swelling offshore market in China's currency.
Yuan-based "dim sum" bonds are drawing global investors these days for their higher yields, not merely as a bet that the Chinese currency will rise.
Large, state-controlled lenders China Development Bank Corp. and Export-Import Bank of China are planning to pitch dim-sum bonds in London to investors, said people familiar with the matter.
HSBC, the most active underwriter of "dim sum" bonds overall, and Royal Bank of Scotland Group PLC, for instance, have formed teams dedicated to developing their offshore yuan services in London.
"Hong Kong is still the major center, but this has gone beyond Asia, " said Augusto King, Royal Bank of Scotland's co-head of debt capital markets in Asia, talking about investors' interest in dim-sum bonds, also known as CNH bonds, where the "H" stands for Hong Kong.
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