Dim Sum market hits record high, with further growth expected

Ollie Gordon
THE MARKET for Dim Sum bonds – those denominated in renminbi but issued off the Chinese mainland – hit a record level this year, magic circle law firm Linklaters said yesterday.

Total Dim Sum bonds issued in 2014 totalled $85.7bn (£54.5bn), representing a substantial 66 per cent increase on last year.

According to Dealogic data, the countries that saw the biggest increases in issues since last year included Hong Kong, which was up 71 per cent, and China, which saw a six per cent rise. Malaysia was the source of the largest increase in total volume compared with 2013, up 648 per cent, followed by Australia and South Korea, which saw rises of 152 per cent and 143 per cent respectively.

Andrew Carmichael, Linklaters’ capital markets partner, said: “While issuance is subject to global market conditions, international­isation of the renminbi and dim sum market is expected to continue on a similar trajectory path as 2014 as it emerges as a force shaping global finance.

“[This year] saw a significant increase in value of Dim Sum deals compared to last year, particularly from South Asian and Pacific counties and this is likely to continue into next year. It’s no surprise that we saw a decrease in Russian companies issuing Dim Sum bonds.”