High-yield dim sum is back ... but investors want pandas

The moribund offshore renminbi bond market got a shot in the arm on Thursday, with the arrival of its first high-yield deal in some 18 months. But investors with a craving for so-called dim sum bonds may be disappointed panda bonds are set to devour all in their path.

ILFS, an Indian roads and infrastructure firm, Rmb900 million $138 million from an upsized three-year dim-sum bond on Wednesday. On the face of it, that should give cause for optimism that the dim sum market can revive.

Yet foreign investors and bankers remain cautious on the prospects for meaningful recovery in the dim-sum market...