Dim sum, light Chinese snacks traditionally consumed before noon along with tea, are becoming popular across the world. Similarly, a financial instrument named after this famous dish has become favourite of some investors. Dim sum bonds are bonds that allow foreign investors to invest in domestic Chinese debt. China’s capital rules do not allow foreign investment in Chinese domestic debt in China. To overcome this, several companies issued Chinese Yuan denominated bonds in Hong Kong. Of late, dim sum bonds have been preferred despite their low yields because of steady appreciation of Yuan against the dollar.
Published : Apr 16, 2018, 1:38 am IST | Updated : Apr 16, 2018, 1:38 am IST ,