Western Asset Management, which manages US$442 billion, has been adding to its portfolio of dim sum bonds because of its positive view on the yuan.
A modest recovery in Hong Kong’s dim sum bond market is likely this year as yields rise to attractive levels after the deleveraging efforts by the People’s Bank of China and rapid appreciation of the yuan in recent months, say analysts. Activity could increase further if internationalisation of the yuan accelerates, they added....................
Dim sum bonds, which can bypass onshore regulations and tax implications, will probably still be the first stop for US and Hong Kong-based investors, according to Stratton Street.
Source:http://www.scmp.com/business/money/wealth/article/2131263/hong-kongs-dim-sum-bond-market-seen-bottoming-out-amid-rising