Hong Kong’s offshore yuan bonds will likely hit a record year, according to Bloomberg data.
Corporate issuers have already raised a record $46.2 billion this year. Deutsche Bank estimates annual dim sum bond issuance tripled between 2022 and 2024, hitting 1.4 trillion yuan (about $196.5 billion) in 2024. Observers expected that figure to be higher this year.
Indications are that Chinese tech giants are also pondering their own debt issuances. For example, Baidu, the mainland’s largest search engine, said in early-September it would issue 4.4 billion yuan of such bonds after a 10 billion yuan sale in March. Similarly, firms like Tencent Holdings and Meituan were reportedly considering issuing debt—despite neither company having done so in four years, local media reported.
Dim sum bonds are yuan-denominated debt issued outside mainland China. Since their first introduction, they have gone from fringe finance to become a key avenue for Beijing’s perennial goal of yuan internationalization. Current interest in such bonds indicates both cost advantages for issuers due to favorable rates and structural reforms that helped broaden the investor base. That comports with the city’s aim to become a fundraising hub beyond mere equities, the SCMP reported in mid-September.
Global investor demand, a desire to diversify portfolios away from US dollars, and the southbound Bond Connect mechanism with the mainland are what has led to greater liquidity and attractive funding in the overseas dim sum bond market. This past July, the territory expanded Bond Connect access to include wealth managers, securities firms, and insurance companies.
Indeed, the offshore yuan bond market has been very busy in 2025, with year-to-date issues at 525 billion yuan—up 8% year-on-year.
Overseas yuan funding is cheaper than dollar bonds despite a quarter-point rate cut in mid-September by the US Federal Reserve, with indications of more to follow. Dim sum bond issuers saved up to 40 basis points by raising offshore yuan and swapping into US dollars in some cases, Deutsche Bank research suggested. The German lender said the dim sum bond market had room to grow and could conceivably reach 1.6 trillion yuan next year.
