Disregarding concerns about the rather patronizing name that has been thrust on Hong Kong’s renminbi-denominated bond market, the real problem with the introduction of the dim sum sector is that it has distracted attention from much more pressing concerns related to China’s debt markets. The option to issue offshore in renminbi had been restricted to Chinese companies until last year, when pioneering offerings by companies including McDonald’s and Caterpillar made the headlines. The former was the first multinational to take advantage of the new mechanism, via an Rmb200 million ($30 million) deal in August; Caterpillar Financial followed in November with an Rmb1 billion two-year note yielding 2%.
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