US banks, particularly Goldman Sachs, are leading a significant increase in borrowing renminbi, attracted by low interest rates in China's offshore debt markets. This surge in borrowing is contributing to the growing role of the Chinese currency in global finance. Total borrowing in "dim sum bonds" – renminbi-denominated debt issued outside mainland China, mostly in Hong Kong – has reached Rmb300 billion ($44 billion) so far this year, which is more than double the amount at the same point in 2025. Goldman Sachs alone has borrowed Rmb32.1 billion, making it the largest foreign issuer and the second-largest overall, accounting for about 10% of total issuance.
The appeal of renminbi borrowing stems from a substantial yield gap. China's 10-year government bond offers a yield of about 1.75%, while Goldman's 10-year dim sum bond offers a coupon of 3%. In contrast, the US Treasury equivalent is at 4.46%, making borrowing in renminbi approximately 60% cheaper than in dollars. This cost advantage allows investment banks to save hundreds of millions in basis points annually. Goldman Sachs has stated it swaps the proceeds into dollars and hedges currency risk, deploying the funds across its global operations rather than its mainland China activities.
The increase in dim sum bond issuance is supported by Beijing's policies, which aim to internationalize the renminbi by making it easier for mainland Chinese investors to purchase fixed-income products in Hong Kong. This creates a large demand for offshore renminbi assets. Unlike onshore yuan bonds (panda bonds), dim sum bonds are not subject to China's strict cross-border capital controls, providing an attractive alternative funding source without capital account complications. This trend signifies the renminbi taking over a role once played by the Japanese yen, which has become less attractive due to rising borrowing costs.
Foreign issuers, including countries like Portugal and government entities such as Finland's MuniFin and the Korea Development Bank, are the primary drivers of this growth, a shift from last year when big Chinese tech companies were the main issuers. Analysts like Lombard Odier's John Woods note that Beijing encourages foreign issuers to borrow in renminbi to promote it as a global funding and reserve currency and to reduce reliance on the US dollar. While the offshore market provides a pool of renminbi-denominated assets outside onshore controls, most investors in these dim sum bonds are currently from mainland China.
