Tiagong, HK Got New Huat Big big Dim Sum Bond for savvy investor like Boss John

[k1976]

Just when people started to give up on Hong Kong’s relevance as a financial hub, a new breed of money seekers is coming to town.

Local government-affiliated industrial companies have been avid issuers of dim sum bonds, or offshore yuan-denominated notes, lately. Qihe Urban Investment Construction Group, which is involved in infrastructure construction in the northeastern Shandong province, is new to brokers in Hong Kong. But since late September, the entity wholly owned by Qihe County has issued notes totaling 2.4 billion yuan ($336 million). All have a 7.8% coupon, except for one offering extra credit protection

 

[k1976]

https://www.bloomberg.com/opinion/a...nese-stressed-money-seekers?srnd=premium-asia


U wet wet underwear?
Quickly book your ticket to HK

 

[k1976]

Blow-out on ‘dim sum’ bonds fuels boom in offshore rates options Swaptions on USD/CNH swaps enjoy boost as investors adopt ‘all-you-can-eat’ approach to callables

Credit: Risk.net montage By Chris Davis and Jiefei Liu 07 Dec 2023 Tweet

Anyone who’s enjoyed dim sum knows how moreish it can be. Once you’ve tasted your first steamed bun, it’s easy to get through an entire trayful. Investors from mainland China have found it similarly hard to exercise moderation when consuming the callable variety of ‘dim sum bonds’, a term widely used to describe notes denominated in offshore renminbi (CNH). The feasting began in September 2021 when the China-Hong Kong Bond Connect scheme launched its Southbound channel, which offers mainland


https://www.risk.net/investing/7958...um-bonds-fuels-boom-in-offshore-rates-options

 

[k1976]

https://enmobile.prnasia.com/releas...lion-offshore-bonds-in-hong-kong-418665.shtml


China's southernmost province Hainan issued offshore bonds (also known as Dim Sum Bonds) worth 5 billion yuan (US$686 million) in the Hong Kong SAR on September 13, which are listed on the Hong Kong Stock Exchange.

Certified by the Hong Kong Quality Assurance Agency, the new Hainan bonds include 3 billion yuan in two-year bonds for sustainable development with a coupon rate of 2.45%, 1 billion yuan in three-year 'green' bonds focusing on biodiversity with a coupon rate of 2.53%, and 1 billion yuan in five-year 'blue' bonds labeled for ocean-related projects with a coupon rate of 2.70%.

The bond sale has attracted strong response from investors, with confirmed orders from a total of 35 accounts from different countries and regions, including policy and commercial banks, asset management firms, and funds. Orders totaled 12.9 billion yuan (US$1.77 billion) at their peak, oversubscribing the bond by 2.58 times.

 

[k1976]

Settlement of allocated bonds will be handled via the Hainan Free Trade (FT) accounts, a convertible accounting system with RMB as its base currency. These accounts are aimed at accommodating the expected increase in cross-border transactions and foreign investment in the Hainan Free Trade Port.

This is the second time for the Hainan government to issue offshore bonds in Hong Kong following last year's successful issuance of 'blue' bonds and sustainable development bonds. This year, Hainan will be the first local government in the Chinese Mainland to test the waters by issuing the nation's first-ever biodiversity-themed 'green' bonds, offering international investors more asset allocation options for RMB bonds.

Proceeds from the sale of the bonds will primarily go toward improving healthcare and education, as well as strengthening marine conservation, environmental monitoring & restoration, and biodiversity protection.

The Hainan government is issuing these offshore bonds in order to deepen reform and opening-up, accelerate the implementation of sustainable development strategies, and advance the development of the national ecological civilization pilot zone.

 

[k1976]

https://www.asiabusinessoutlook.com...mand-from-international-groups-nwid-5377.html

 

[k1976]

International corporations are flocking to China's bond markets, issuing unprecedented levels of yuan-denominated bonds and taking on significant loans from mainland banks. They are taking advantage of the extremely low-interest rates on the yuan while funding costs in other countries are on the rise. Corporations and financial institutions are raising unprecedented funds by issuing yuan-denominated bonds in mainland China and in Hong Kong, referred to as panda and dim sum bonds, respectively.

The increase in their borrowing from Chinese banks has propelled the yuan ahead of the euro to become the second most widely used currency in global trade finance, boosting Beijing's efforts to expand the international use of the yuan.

 

[k1976]

Fiona Lim, a senior FX strategist at Maybank, says that the global trend of borrowing from China is surprising, given that international investors are currently avoiding the world's second-biggest economy due to geopolitical tensions and slow growth.

"While the fundamental story is not compelling for Chinese investors looking for growth, the depreciation of the yuan as well as the rate cuts result in a much cheaper cost of borrowing," Lim said.

During the months of January to October, foreign companies like the German carmaker BMW and Crédit Agricole S.A, along with international branches of Chinese firms, collectively raised a historic 125.5 billion yuan ($17.33 billion) through the sale of panda bonds. This figure represents a 61 percent increase compared to the same period in the previous year.

Last month, the National Bank of Canada successfully raised 1 billion yuan through the sale of a three-year panda bond with a 3.2% coupon rate, significantly lower than the 4.5% rates domestically.

 

[k1976]

Like that....must hurry while stock last

Dun miss the boat....Heng Ong Huat lah

 

[laksaboy]

Hong Kong has turned into another shithole mainland China city now. Don't fall for it.