CCB may tap London market (3)

To date, only a handful of financial institutions, including HSBC and ANZ, have launched dim sum bonds in London. The city saw its first yuan bond in April, when HSBC offered 2 billion yuan bond.

Yet, Shi Lei, the deputy manager of Ping An Securities' fixed-income department, pointed out that bearish conditions in the global market have kept a lid on activity in the dim sum market and would likely limit offerings over the near-term. "The continued appreciation of the yuan in the international market has pushed up interest rates and thus increased repayment costs for dim sum bond issuers," said Shi.

Dim sum bond sales have fallen 55 percent in the first 10 months compared to the same time last year, according to a report issued by Fitch Ratings on October 31.

"CCB is a State-owned financial institution with a high credit rating and so it can issue bonds at a low yield rate. Few Chinese firms can do the same," remarked Shi.

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