Offshore RMB is becoming a funding market international issuers can no longer ignore.
CNH is not automatically cheaper than USD. But changes in relative interest rates, deeper offshore RMB liquidity and Hong Kong’s market infrastructure have made the comparison increasingly relevant.
CNH vs. USD should be an all-in cost comparison.
The opportunity exists only when lower RMB benchmark rates survive the addition of credit spread, currency exposure, hedging, tenor and transaction costs.
- RMB and USD benchmark rate differential
- Issuer-specific credit spread
- Tenor and repayment profile
- Currency of revenues and use of proceeds
- FX and hedging economics
- Transaction and refinancing costs
Hong Kong is already a large CNH debt market.
According to the Hong Kong Monetary Authority, CNH debt securities issued in Hong Kong reached RMB 1.10 trillion in 2025, while outstanding CNH debt securities rose to RMB 1.61 trillion by year-end.
RMB 1.10tn
CNH debt securities issued in Hong Kong during 2025.
RMB 1.61tn
Outstanding CNH debt securities issued in Hong Kong at end-2025.
27.6%
Year-on-year growth in outstanding CNH debt securities at end-2025.
Source: Hong Kong Monetary Authority, “The Hong Kong Bond Market in 2025”, published 2026. Market conditions change over time; figures are presented for market context only.
Why an issuer may care.
The value of CNH is broader than coupon alone. For the right borrower, it can add another capital pool and reduce dependence on a single funding currency.
Funding Diversification
Add an offshore RMB channel alongside USD, bank lending and domestic markets.
Asian Investor Access
Broaden the investor base toward institutions with appetite for RMB assets and Asian credit.
Timing Optionality
Use a second market when relative rates or investor demand create a better window than USD.