Hong Kong’s dim sum bond market hits new heights as State Grid deal draws record orders

Lower yuan borrowing costs and longer maturities lure issuers, marking a fresh phase in the city’s expanding offshore market

The offering comprised 3.9 billion yuan of five-year bonds priced to yield 1.86 per cent, 7 billion yuan of 10-year notes at 2.18 per cent and 4 billion yuan of 20-year debt at 2.46 per cent.

Investor demand reached a record high, with orders totalling 193.8 billion yuan, more than 13 times the amount on offer, according to the bank.

The deal comes as Hong Kong’s dim sum bond market continues to expand. Nearly 500 billion yuan of offshore yuan bonds were sold in the first seven months of the year, according to Bank of China. The lender said it underwrote more than 100 billion yuan during the period.