8 Comments
 

Do you mean the CNH aka Dim Sum bonds that are traded in HK or the CNY bonds that are only in the Mainland?

Too late for second-guessing Too late to go back to sleep.
 
brandon st randyDo you mean the CNH aka Dim Sum bonds that are traded in HK or the CNY bonds that are only in the Mainland?
Either, but preferably mainland. My understanding is that you have to pay a premium for the Dim Sum bonds, correct or incorrect?
 
Best Response
buddyfox1987
brandon st randyDo you mean the CNH aka Dim Sum bonds that are traded in HK or the CNY bonds that are only in the Mainland?
Either, but preferably mainland. My understanding is that you have to pay a premium for the Dim Sum bonds, correct or incorrect?

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.

Too late for second-guessing Too late to go back to sleep.
 
brandon st randy
buddyfox1987
brandon st randyDo you mean the CNH aka Dim Sum bonds that are traded in HK or the CNY bonds that are only in the Mainland?
Either, but preferably mainland. My understanding is that you have to pay a premium for the Dim Sum bonds, correct or incorrect?

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.

I meant relative to the main land issued bonds. I want RMB denominated mainly for the currency appreciation potential, assuming they relax the peg over time.

Pardon my ignorance, but what is RQFII? Is this what makes them difficult to own for foreigners?

 

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.

Too late for second-guessing Too late to go back to sleep.
 

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