Three exchange traded funds launched in the US to track the return on
renminbi-denominated bonds may have trouble trading the debt securities they are meant to track because of limited liquidity in the market for so-called “dim-sum” bonds.
The renminbi bond market has grown rapidly. Some Rmb72bn ($11.3bn) of debt has been issued this year, Dealogic said, twice the total for 2010, by the Chinese government and companies and international groups such as Caterpillar and Volkswagen.
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