Offshore Renminbi-Denominated Bonds Dim Sum Bonds

China, the second-largest economy in the world after the United States, has started the process of internationalizing its currency, the renminbi (RMB), to make it a global reserve currency. To this end, an offshore market for RMB-denominated bonds (dim sum bonds) has been established in Hong Kong to promote the use of the RMB in investments outside China. This market has grown rapidly to over RMB186.8 billion with 329 issues in less than five years. It is likely that the dim sum bond market will continue to grow because of China's efforts to internationalize its currency as a national policy.