DBS riding on rapid growth of offshore yuan bond market
Published on Mar 12, 2014 3:04 PM
The offshore yuan bond market is likely to remain buoyant this year, according to Singapore lender DBS.
In general, demand among foreign investors for corporate bonds denominated in the Chinese currency, also known as the renminbi (RMB), still outstrips supply, said DBS' head of fixed income Clifford Lee in a briefing on Wednesday.
And Chinese companies, facing a cash crunch at home and aided by a relaxation of rules, are more likely to consider issuance of such bonds this year, he added.
Since the Chinese government began its strategy of internationalising the yuan 10 years ago, many companies, mostly from Hong Kong and Chinese, have been raising debt outside their home market by issuing what are known as offshore yuan bonds.
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