Dim Sum Bond Sales Surge to Record High on Cheap Yuan Funding

Companies are issuing a record amount of yuan-denominated bonds outside China as they seek to take advantage of the low cost of borrowing in the currency.

Sales of so-called dim sum debt climbed to 46.2 billion yuan ($6.4 billion) in March, the highest since Bloomberg started compiling the data in 2007. Issuance also set a quarterly record of 98.5 billion yuan in the first three months of the year, based on the calculations, which exclude convertible bonds and certificates of deposits.

The boom in dim sum bond issuance is being driven by a divergence between monetary policy in the ...