The Dim Sum bond Market Is Expanding Rapidly with an Increasingly Diverse Issuance Structure
Against the backdrop of global interest rate divergence and the deepening internationalisation of the renminbi (RMB) over the past two years, the Dim Sum bond (offshore RMB bond) market has continued to grow. Total issuance reached RMB 756.1 billion in 2025, up 10% year-on-year, and grew another 11.1% year-on-year in the first quarter of 2026, indicating strong momentum. Of particular note, issuance by foreign entities has gained significant traction, reaching a record high of RMB 175.6 billion in 2025, and surging 128.6% year-on-year in Q1 2026 to RMB 76.8 billion, accounting for 31% of total Dim Sum bond issuance in the period.
By issuer type, financial institutions still dominate among foreign issuers, but their issuance purposes have expanded from early-stage liquidity supplementation to strategic goals such as currency matching of assets and liabilities and supporting cross-border operations. Sovereign and quasi-sovereign issuers have seen steady expansion, with Indonesia issuing RMB-denominated sovereign bonds in 2025 and Pakistan announcing its issuance plan in April 2026. For such issuers, issuing Dim Sum bonds is more about optimising foreign reserve structures, strengthening economic and trade ties with China, and advancing the development of RMB reserves and payment channels in their own countries. In addition, supranational organisations (e.g., multilateral banks) have also been active participants, further enhancing the international credit endorsement of the Dim Sum bond market. From a regional perspective, the number of home jurisdictions of foreign Dim Sum bond issuers nearly doubled from 13 in 2020 to 25 in 2025. In 2025, U.S. issuers ranked first by issuance volume (accounting for 20%), followed by supranational organisations, Russia, and France — a highly diversified issuer mix. This indicates that Dim Sum bonds are no longer confined to traditional Asian markets, but have become an increasingly important component in global institutional asset allocation.
Direct Drivers: Interest Rate Advantage and Balance Sheet Currency Matching Needs
As the onshore RMB interest rate declines and mechanisms such as the Southbound Bond Connect continue to improve, offshore RMB liquidity has increased significantly, directly reducing the financing cost of Dim Sum bonds. The persistently widening yield spread between offshore Chinese sovereign bonds and U.S. Treasuries highlights the great interest rate advantage of offshore RMB bonds, which has become an important consideration driving foreign issuers to increase issuance. Data shows that the weighted average coupon of foreign issuers fell from 2.98% in 2025 to 2.43% in the first quarter of 2026. Meanwhile, the weighted average maturity of Dim Sum bonds issued by foreign issuers has remained stable at 5–7 years in recent years, exhibiting a distinct medium-to-long-term profile. This reflects foreign entities' recognition of the RMB's long-term stability and their confidence in using the RMB as a long-term funding and reserve currency.
On the other hand, issuing Dim Sum bonds also caters to foreign issuers' need to adjust the currency structure of their balance sheets. Against the backdrop of China's growing economic influence globally, multinational enterprises remain largely dollar-funded on the liability side, while their asset and revenue sides increasingly include RMB-denominated assets and income. Issuing Dim Sum bonds helps these issuers achieve currency matching and risk management in their assets and liabilities.
Long-Term Strategic Considerations: Dollar Risk Mitigation and RMB Internationalisation
Issuing RMB-denominated bonds helps effectively diversify currency risk. Long-term over-reliance on dollar financing leaves issuers vulnerable to external shocks, including Federal Reserve monetary policy, dollar exchange rate fluctuations, U.S. debt vulnerabilities, and geopolitical tensions. In contrast, the RMB exchange rate has demonstrated greater resilience overall. As the RMB becomes an increasingly important international currency, it can significantly optimise financing structures and diversify currency risk. For sovereign and quasi-sovereign institutions (e.g., Indonesia and Pakistan), issuing RMB bonds means that an alternative financing channel, independent of the SWIFT and dollar clearing systems, is taking shape — a channel of strategic security value that cannot be overlooked amid rising global geopolitical uncertainty.
Furthermore, the continued advancement of RMB internationalisation has greatly enhanced the convenience of RMB financing. On the one hand, with the improvement of the Cross-Border Interbank Payment System (CIPS) and the extensive network of offshore RMB clearing banks, cross-border RMB settlement efficiency has increased significantly, and fund transfers have become smoother. On the other hand, offshore RMB market liquidity continues to improve, and the range of investment and risk management tools is expanding, making the entire chain of operations — from financing and utilisation to repayment — more feasible and convenient for offshore issuers. These developments have collectively lowered the transaction costs and operational barriers for issuing RMB bonds, further enhancing their appeal as an alternative funding currency.
Looking ahead, as RMB internationalisation deepens further into investment and pricing functions, and with the onshore low-interest-rate environment persisting, the financing advantages of Dim Sum bonds are expected to remain. The number of foreign issuers and the scale of issuance are likely to continue expanding, and Dim Sum bonds are poised to gradually evolve from an "offshore funding supplement tool" into one of the core vehicles for global RMB asset allocation. This trend not only strengthens the international circulation capacity of the RMB but also provides a compelling practical footnote to the two-way opening of China's financial markets.
Note: This report is translated from the Chinese version. In case of any discrepancies, the Chinese version shall prevail.
ANALYST CONTACTS
Primary Analyst
Jameson Zuo
+852 3615 8341
Secondary Analyst
Siqi Lin
+86 755 8321 0225
RATING SERVICES ENQUIRIES
Additional information is available onwww.cspi-ratings.com
DISCLAIMER
CSPI Credit Ratings Company Limited (“CSPI Ratings”, “the Company”) prepares various credit research and related commentary (collectively “research”) in compliance with the established internal process. The Company reserves the right to amend, change, remove, or publish any information on its website without prior notice and at its sole discretion.
The research is subject to disclaimers and limitations. RESEARCH AND CREDIT RATINGS ARE NOT FINANCIAL OR INVESTMENT ADVICE AND MUST NOT BE CONSIDERED AS A RECOMMENDATION TO BUY, SELL, OR HOLD ANY SECURITIES AND DO NOT ADDRESS/REFLECT MARKET VALUE OF ANY SECURITIES. USERS OF RESEARCH AND CREDIT RATINGS ARE EXPECTED TO BE TRAINED FOR INDEPENDENT ASSESSMENT OF INVESTMENT AND BUSINESS DECISIONS.
This research is based solely on the public data and information available to the authors at the time of publication of this research. For the purpose of this research, the Company obtains sufficient quality factual information from public sources believed by the Company to be reliable and accurate. The Company does not perform an audit and undertakes no duty of due diligence or third-party verification of any information it uses in the research. The Company is not responsible for any omissions, errors, or inconsistencies of the public information used in the research.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, OR COMPLETENESS OF ANY INFORMATION GIVEN OR MADE BY THE COMPANY IN ANY FORM OR MANNER. In no event shall the Company, its directors, shareholders, employees, or representatives be liable to any party for any damages, expenses, fees, or losses in connection with any use of the information published by the Company.
This research focuses on observing trends in the credit markets. This research has not been made available to any issuer prior to its distribution to the public. The Company does not receive compensation for its research.
The Company reserves the right to disseminate its research through its website, the Company’s social media pages, and authorised third parties. No content published by the Company may be modified, reproduced, transferred, distributed, or reverse engineered in any form by any means without the prior written consent of the Company.
The Company’s research is not intended for distribution to, or use by, any person in a jurisdiction where such usage would infringe the law. If in doubt, please consult the relevant regulatory body or professional advisor and ensure compliance with applicable laws and regulations.
In the event of any dispute arising out of or in relation to our research, the Company shall have absolute discretion in all matters relating to resolving the dispute, including but not limited to the interpretation of disclaimers and policies.
Copyright © 2026 by CSPI Credit Ratings Company Limited. All rights reserved.