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Asia-PacificFebruary 16 2011

Investors savour Chinese dim sum bond market

China is using the Hong Kong-based 'dim sum' market to develop its offshore renminbi bond sector and push the local currency onto the international stage. There is a huge pool of liquidity keen to invest and although it must face the typical hurdles of any nascent market, the signs are good
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As it tries to wean itself off the dollar, China sees its offshore bond market as a key tool in promoting the renminbi as an international currency.

Hong Kong has become the natural conduit for the developing market as issuers from the Chinese government to US multinationals take advantage of the city’s enormous Chinese-currency deposit base and mature infrastructure.

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