Dim sum flurry as investors show appetite for bonds

Borrowers completed a flurry of dim sum bonds last week, including Agricultural Bank of China, China Construction Bank, Beijing Capital Land and Volkswagen, breaking a pause in dim sum issuance.

With diminished expectations of renminbi appreciation, the dim sum market has had a slower year compared to the dollar market, but the latest burst of activity suggests that dim sum investors still have appetite for new issues as the year winds down.

“October was probably the quietest month for dim sums we have seen in two years,” said one banker. “I think it is pure coincidence. The basis swap was in the favour of borrowers...