‘Dim-Sum’ Debt Rallies on Demand for Yuan Assets: China Credit
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Chinese bonds sold in Hong Kong rallied more than debt from the biggest developing nations in the past three months as international investors snapped up the securities to benefit from expected appreciation of the yuan.
The yield on the government’s 3.3 percent offshore bond maturing in October 2014 fell 22 basis points to 2.91 percent, while that for similar-maturity debt onshore climbed 92 basis points, according to data compiled by Bloomberg. Rates on Russian, Indian and Brazilian securities rose in the period. The yield on notes due in July 2012 issued by Hopewell Highway Infrastructure Ltd., which is controlled by Hong Kong billionaire Gordon Wu, dropped 62 basis points to 2.18 percent.