{
  "id": 2901179,
  "title": "Yuan, Hong Kong dollar bonds surge as issuers seek cheaper funding amid rising US costs",
  "url": "https://urgent.news/2026/08/24/yuan-hong-kong-dollar-bonds-surge-as-issuers-seek-cheaper-funding",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-24T00:00:21.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/business/banking-finance/article/3364976/yuan-hong-kong-dollar-bonds-surge-issuers-seek-cheaper-funding-amid-rising-us-costs"
  },
  "original_language": "en",
  "account": "Hong Kong and mainland China are expected to witness a surge in bond issuance denominated in Hong Kong dollars or the yuan throughout the rest of the year, as issuers seek to reduce their reliance on US dollar bonds and obtain more affordable funding, according to a senior executive at Standard Chartered Bank. David Yim Sau-king, head of debt capital markets for Greater China and North Asia at Standard Chartered Bank, explained that many bond issuers are now turning to bonds denominated in alternative currencies to secure cheaper borrowing costs due to the increased US dollar funding costs. The yield on the US 30-year Treasury bond reached an all-time high of 5.29 percent last week, while the yield on Chinese sovereign bonds was a relatively low 2.18 percent as of Friday, indicating a shift in the market. Historically, international firms primarily issued US-dollar-denominated bonds because bond markets in other currencies lacked sufficient liquidity. However, recent years have seen a change, driven by Beijing's initiatives to promote the internationalization of the yuan. This has encouraged overseas companies to consider issuing yuan-denominated bonds. In 2023, dim sum bonds, which are offshore yuan-denominated bonds issued in Hong Kong or other overseas markets, reached an issuance of 683.04 billion yuan (US$101.59 billion), marking a 46 percent increase year-on-year. Panda bonds, or onshore yuan-denominated bonds issued by international firms in mainland China, experienced an even more substantial 80 percent year-on-year increase, reaching 199.68 billion yuan. These trends are driven by the lower cost of raising funds in yuan compared to the US dollar, and the ability to use the currency for trade or investment purposes. Wonton bonds, which refer to Hong Kong dollar-denominated bonds issued by international firms, are also on the rise due to the Hong Kong government's support for the development of the Hong Kong dollar bond market. The term \"wonton bond\" is a play on \"dim sum bond\" and refers to a Hong Kong dollar-denominated bond issued by an overseas borrower. In 2023, the issuance of wonton bonds reached HK$671.42 billion (US$85.64 billion), a 76 percent increase compared to the same period a year earlier. The Bond Connect program further encourages bond issuance in both Hong Kong and the mainland China by facilitating two-way capital flows and enhancing the depth of the bond markets in these regions.",
  "summary": "Hong Kong and mainland China are set to see continued growth in bond issuance denominated in Hong Kong dollars or the yuan through the rest of the year, as issuers reduce their reliance on US dollar-denominated bonds and seek cheaper funding costs, according to a senior executive at Standard Chartered Bank. “As US dollar funding costs have increased, many bond issuers” have been turning to bonds…",
  "key_points": [
    "Hong Kong and mainland China to see surge in HK dollar/yuan bond issuance",
    "US 30-year Treasury yield hits record 5.29%, Chinese sovereign bonds at 2.18%",
    "Dim sum and wonton bonds up 46% and 76% respectively in 2023"
  ],
  "editors_take": "Rising US dollar funding costs are driving issuers to tap into Hong Kong dollar and yuan bond markets for cheaper funding, reflecting a shift away from US dollar-denominated bonds.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}