HSBC Holdings and Standard Chartered said that sales will double in 2011

HSBC Holdings Plc and Standard Chartered Plc, the largest foreign insurers yuan of bonds sold in Hong Kong, says that sales will double in 2011 as demand outstrips supply and appreciate the yuan.

New problems may increase to a record 80 billion yuan ($ 12 billion) next year, with up to 30 billion yuan of sales in the first quarter, according to HSBC, the No. 2 bond insurer sum so-called penumbra. Standard Chartered, the fourth largest, said that sales could reach 100 billion yuan as the Moscow-based United Co. Rusal and BP Plc plan issues. Offers of this year total 40.7 billion yuan
.

"We're likely to see strong growth to around 80 billion yuan in 2011," said Sean Henderson, head of HSBC's debt syndicate in Asia, in a telephone interview. The dim sum market has grown 10 times since 2008 as China seeks to use the city as an international center to promote the use of the yuan beyond their borders for trade and finance.

The foreign exchange earnings forecasts stimulated an increase of 45 percent each month in yuan deposits in Hong Kong and a high of 217.1 billion yuan in October, according to latest figures from the Hong Kong Monetary Authority, the creation a base of investors looking for yuan-denominated securities. Bond issuers can save about 197 basis points, or 1.97 percentage points in interest payments sell yuan bonds in Hong Kong rather than Shanghai.

Cantonese Food

Dim sum bonds, named after brunch Cantonese food, pays a yield of around 1.83 percent, according to Treasury Markets Association, which tracks 30 outstanding issues, including the notes sold part of China Development Bank Corp. and Bank of China Ltd. The average yield paid three to five-year bonds sold by government-linked companies in China is 3.8 percent, according to Bank of America Merrill Lynch quasi China -Government Index.

investment grade companies in Asia pay an average of 4.76 percent to sell bonds denominated in dollars, according to JPMorgan Chase & Co. 's Asia Credit Index.

China Development Bank bonds dim sum due in November 2013 performance of 1.9 percent, according to the prices of TMA. dollar-denominated bonds lender in October 2014 because the 2.93 percent yield, according to BNP Paribas prices, while its yuan bonds due in October 2013 to pay 3.7 percent, according to Chinabond prices.

Bank of China, the No. 1 insurer of dim sum bonus this year, said this week it plans to establish an index tracking the performance of most-traded notes dim sum, according to an e-mailed statement from the bank in December . 20. Nobody in the Bank of China was able to provide a forecast dim sum of bonds yesterday, said Clarina Man, a spokeswoman.

Issuer Pipeline

Haitong Securities Co. 's Hong Kong unit of a fund of 5 billion yuan of bonds in September to invest in renminbi bonds offshore.

"The pipeline for issuers is still very strong," said Kong Weipeng, head of fixed income investments Haitong International Asset Management, in an interview in Hong Kong on 22 December. "A stable assessment would be helpful for developing the bond market yuan at sea. In the long term, people expect the yuan to appreciate."

The yuan may rise to 6 percent next year against the dollar, Zhang Ming, deputy head of Beijing-based International Office of the State Finance Research supported by the China Academy of Social Sciences, said in an interview this week.

China's currency is the best performance among the BRIC economies in the last decade. The yuan has strengthened 25 percent against the dollar in the last 10 years, surpassing the 15 percent gains of the Brazilian real, 3.4 percent in the rupee in India and a 8.7 percent slide in the Russian ruble.

BP, Rusal

The yuan gained 0.05 percent to 6.6431 per dollar yesterday in Shanghai, the China Foreign Exchange Trade System. non-deliverable show traders are betting on an advance of 2.1 percent over the next 12 months.

Rusal plans to hire banks to sell yuan-denominated bonds and carry out a sale as soon as the first quarter of 2011, head of the company capital markets Mukhamedshin Oleg said on December 17 in Moscow. The sale of one billion yuan would be a "reasonable" he said.

BP, based in London, was considering selling yuan-denominated bonds, Gary Admans, manager of the company's debt capital markets, told a conference in London on 7 December. International Finance Corporation, private investment arm of the World Bank, aims to provide about 100 billion yuan of five-year bonds, Nina Shapiro, IFC's CFO said on October 20.

Galaxy, VTB

The government of China and China Development Bank was the issuance in the bond market very weak this year, with 14.6 billion yuan of sales between them.

The casino operator Galaxy Entertainment Group Ltd. sold the first dim sum bonus this month speculative grade. The 1.38 billion yuan of three-year bonds were to yield 4.625 percent.

VTB Group, the second largest bank in Russia, became the first company of one of the emerging markets outside Asia to sell yuan-denominated bonds on 10 December. The three-year bonds were yielding 2.95 percent, compared with a yield of 5.9 percent for five-year bonds VTB dollars.

Elsewhere in credit markets of China, the credit default contracts to five years in exchange for the country's bonds were little changed at 68 basis points yesterday, CMA prices show. The contract rose 17 basis points in November after falling in October and September. Swaps credit-default tends to decrease as improving investor confidence and rising as it deteriorates.

"The imbalance in demand"

The government bond yield 3.67 percent due in October 2020 rose 3.5 basis points yesterday to 3.83 percent, Interbank funding data center shown. interest rate swaps to a year, the fixed cost required to receive the floating rate repurchase seven days, up eight basis points to 3.15 percent yesterday.

"The current imbalance between investor demand and supply of bonds is such that there could lead to 100 million yuan to 150 billion yuan from the issue," Daniel Mamadou, co-head of Asian capital markets and their own solutions to Deutsche Bank AG, said in a telephone interview. "But all market players are now understood that this will be a process that is carefully controlled and administered by the Bank, both of China and Hong Kong Monetary Authority."

Deutsche Bank, who helped organize the first dim sum bonus of high performance, is the largest insurer session.

HSBC forecast for the new issue that regulators can make borrowers repatriate earnings and cross currency swap markets develop further, "said Henderson.