CSPI Ratings is pleased to announce that Shanghai Securities News has reported on Director at CSPI Ratings, Winnie Guo's insights regarding the issuance of Dim Sum Bonds and Chinese offshore USD bonds in an article titled "Dim Sum Bond Market Develops, China offshore bond is under the spotlight"

Below are excerpts from Winnie's views:

Dim Sum Bond Market: Quality and Quantity Advance Together

In recent years, the issuance scale of Dim Sum Bonds has surged quickly. Winnie said: " Unlike the previous landscape dominated by local participants in the Dim Sum bond market, the past two years have witnessed a more diversified investor base and a broader range of issuers. More foreign institutions and Hong Kong enterprises have actively participated in the Dim Sum bond market, including Singapore's sovereign wealth fund Temasek, the International Bank for Reconstruction and Development, the Asian Infrastructure Investment Bank, MTR Corporation, and Swire Properties, all of which issued Dim Sum bonds in 2024. Additionally, many foreign investors have become increasingly active in the Dim Sum bond market due to asset allocation needs. With the internationalization of the RMB, both investors and issuers of Dim Sum bonds are expected to become even more diversified."

Chinese Offshore USD Bonds: Market Warming, Credit Improving

“The interest rate differential between China and the US, along with currency rates, are key determinants affecting investor preferences, capital flows, and issuance. In 2024, driven by the Federal Reserve's interest rate cuts and the Chinese government's economic stimulus, both the supply and demand sides of Chinese offshore USD bonds have shown improvement.” Winnie analyzed.

Industry specialists predict that the Chinese offshore USD bond market will maintain its momentum in 2025. Winnie highlighted that a total of USD 159.4 billion in Chinese offshore USD bonds will mature this year, with a peak concentration occurring between March and June. This refinancing requirement is expected to boost offshore issuance in 2025. Overall, against the backdrop of a more accommodative US monetary policy and lower US interest rates, the issuance of Chinese offshore USD bonds is anticipated to rebound. However, considering the persistent gap in the China-US interest rate differential, which is unlikely to reverse in the short term, the recovery may take some time.

From a demand perspective, as counter-cyclical monetary policy fosters sustained economic recovery, the overall credit environment of the Chinese offshore USD bond market is anticipated to improve. This enhancement is expected to support the growth of demand in the USD bond market.

" The recent recovery in China's Manufacturing PMI and Industrial Value Added reflects the government's efforts to cultivate New Productive Forces. With the rebound in manufacturing and rising demand for financing, the manufacturing sector is expected to become a new driver for Chinese USD bond issuance in 2025.” Winnie said.

Link to the original report：https://www.cnstock.com/commonDetail/341076

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CSPI Ratings (CSPI Credit Ratings Co., Ltd) is a premier international credit rating agency headquartered in Hong Kong. Licensed by the Hong Kong Securities and Futures Commission since 2012, CSPI Ratings is dedicated to delivering world-class credit analysis with a distinct focus on emerging markets. By providing globally benchmarked credit ratings and comprehensive, original research, CSPI Ratings supports global investors with trusted insights essential for navigating today’s complex capital markets.

In 2024, CSPI Ratings was honored as the “Public Finance Rating Agency of the Year - China” by The Asset and received the “Rating Agency Innovation Award” from DMI, underscoring its commitment to analytical excellence and innovation.

As a member of CSCI (China Securities Credit Investment Co., Ltd.) — a nationwide credit service powerhouse in China founded by 35 leading financial institutions — CSPI Ratings is backed by one of the country’s most respected financial ecosystems. Operating as the international brand of CSCI Pengyuan (CSCI Pengyuan Credit Rating Co., Ltd), China’s foremost domestic credit rating agency, CSPI Ratings offers global investors a unique blend of local expertise and global standards, bridging markets and building trust worldwide.

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