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Bloomberg
A record rally in the offshore yuan is rekindling hope for the Dim Sum bond market.
With China’s currency defying North Korea tensions to be Asia’s top performer over the past month, that bodes well for yuan-denominated debt sold in Hong Kong, according to BOC International Holdings Ltd. The Dim Sum market has been under pressure since 2015, when the shock yuan devaluation rattled global markets and shattered one-way appreciation bets, and issuance is set to dwindle to the least in seven years.
Now, it seems like officials have turned to Dim Sum friend from foe. The offshore yuan advanced for 14 days, amid speculation that policy makers will buoy the currency in the run-up to a key Communist Party meeting on October 18.
A new and surprising twist:
that premise of government support is positioning the yuan as a recipient of haven flows from investors rattled by the escalating tension between the White House and Pyongyang.