Dim Sum Bonds Go to First From Worst

Rebound in China’s economy should bolster the securities next year.

Dim Sum bonds transformed into the best local-currency company notes in Asia this year from the worst in 2011 and are among the top picks of Western Asset Management Co. as China’s economy rebounds.

Corporate yuan-denominated securities sold outside mainland China gained 6.2 percent in 2012, more than returns on local currency company bonds from any other Asian country, according to HSBC Holdings Plc indexes as of Dec. 24. Dim Sum debt beat the 4.8 percent on non-government Hong Kong-dollar notes and the 4.7 percent increase in similar corporate debt denominated in Singapore’s currency, the indexes show. The yuan notes lost more than 2 percent in 2011, the data show.

Sovereign Dim Sum

 

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