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‘Dim sum’ bond issuance surges

12 July 2012

Issuance volumes in the offshore renminbi (CNH) bond market hit a record monthly high in June, buoyed by a surge in sovereign bond deals by the Chinese government. A total of 16 deals were priced, raising more than Rmb46bn ($7.2bn, £4.6bn, €5.9bn) and doubling the amount issued in May. We note, however, that corporate issuance continued to disappoint. This confirms our earlier view that higher funding costs would curb the interest of Chinese and international corporates to issue CNH debt.

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