Feng Huang Wang·2025-09-18 11:53Core Insights - The dim sum bond market is transitioning from rapid expansion to stable growth, with a total issuance of 771.4 billion yuan this year, representing a year-on-year decline of 10.79% [1][2] - The diversity of issuers in the dim sum bond market is increasing, with notable entries from emerging industries, shifting the traditional focus from financial and municipal investment entities [1][3] - Major tech companies like Tencent and Baidu have recently issued dim sum bonds, attracting market attention and indicating a trend among internet giants to utilize this financing avenue [1][4] Issuance Trends - In 2024, the total issuance of dim sum bonds is projected to reach 1.27 trillion yuan, marking a new high despite a decrease in issuance scale compared to last year [2] - The issuance of dim sum bonds has accelerated since August, likely due to the expansion of the southbound bond connect, with nearly 200 billion yuan issued in this period [2][3] - The current outstanding dim sum bonds amount to approximately 1.69 trillion yuan, with nearly half issued by financial institutions [2] Market Dynamics - The net increase in issuances from real estate and financial sectors has been negative, while other industries, including technology and utilities, have shown significant growth in issuance [3] - The ongoing AI boom is driving capital expenditure among global tech giants, including domestic internet companies, which may further enhance the attractiveness of dim sum bonds for financing [3][4] - The expansion of the southbound bond connect is expected to continue to boost the appeal of the dim sum bond market for companies looking to finance overseas operations [4]