The Chinese Offshore Renminbi-Denominated Bonds: Dim Sum Bonds

China, the second largest economy in the world after the US, has started the process to internationalize its currency, the renminbi (RMB), to become a global reserve currency. To this end, the offshore market for RMB-denominated bonds (dim sum bond) market in Hong Kong has been established to promote the use of RMB in investment outside China. This market has grown rapidly to a size of over 186.8 billion yuan with 329 issues in less than five years. It is likely that this dim sum bond market will continue to grow because of China’s efforts to internationalize its currency as a national policy.