Chinese Renminbi Yuan Debt
How would I go about buying Yuan denominated debt? I am having trouble figuring this out.
Thank you!
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Do you mean the CNH aka Dim Sum bonds that are traded in HK or the CNY bonds that are only in the Mainland?
Premium relative to what? To buy CNY bonds as a foreign investor you are subject to the RQFII quota although they are taking steps to make more of these type of assets available. Why do you limit yourself to RMB denominated ones? Most recently Many Chinese companies actually prefer to issue U.S denominated bonds in the international market where they get lower yields than dim sums bonds.
Pardon my ignorance, but what is RQFII? Is this what makes them difficult to own for foreigners?
Anyone else??
bump
Google is your friend. Also I dont recommend buying Chinese bonds based on expectation of RMB appreciation alone. Many of the issuers are problematic (much like the Chinese companies that went public abroad) and might start experiencing distress shortly.
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