Definition
The term dim sum bond refers to an indenture issued in Hong Kong, in Chinese yuan, by a bank or corporation located in China or Hong Kong. Dim sum bonds are issued when a corporation wishes to raise capital from investors interested in holding yuan denominated assets.
Explanation
Corporations that wish to raise funds in Hong Kong have the option of issuing what are known as dim sum bonds. These bonds are sold by non-domestic as well as domestic entities, including corporations, financial institutions and governments, and are issued in Chinese yuan. Dim sum bonds are attractive to investors interested in holding debt issued in yuan, but are unable to do so due to Chinese domestic debt regulations.
Dim sum is a popular Cantonese meal that is served as bite size portions of food served on small plates or in a steamer basket. This style of food preparation is especially popular in Hong Kong, where restaurants begin serving dim sum in the early morning hours.
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