Appetite growing for dim sum bonds, say experts

Dim sum bonds, or offshore yuan bonds, will see increasing demand, experts said, thanks to lower financing costs in Hong Kong and tightening liquidity on the mainland.

The dim sum debt sold in the first quarter of this year came to 125 billion yuan ($20 billion), the highest quarterly figure on record, Reuters data showed. That compares with 53 billion yuan for the last quarter of 2013.

But the dim sum bonds in Hong Kong recorded a negative 2.11 percent rate of return in the first three months of 2014, HSBC reported. But the bank expects 0.8 percent gain in the second quarter.