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Diversify fundingThe growing liquidity of renminbi debt capital markets represents new avenues forfinancial institutions to diversify funding.Where’s the opportunity?The Dim Sum bond market has come of age as a way of diversifying funding into renminbi.All categories of issuers are represented with about CNH275 billion raised in 2012 andbetween CNH280 billion and CNH360 billion projected for 2013 according to our forecasts.Onshore funding options continue to broaden with regular announcements of regulatoryeasing by Chinese authorities.How can HSBC help you seize it?We have a leading position for renminbi funding, from offshore Dim Sum issues and IPOs inLondon and Hong Kong through to onshore funding options via our position as the leadingforeign bank on the Mainland.USD101 billion – new loans by banks in mainland China in December 2012 (xiv)16Finance in renminbiwith HSBCDiversify with Dim SumIf you want to raise renminbi offshore, lookto HSBC. We are the top-ranked underwriterand lead manager in the Hong Kong Dim Summarket, holding first position in Bloomberg’sleague table in January 2012, with 130 issuesat CNY42 billion total issuance value. Ourranking reflects our extensive relationships andplacement power among investors who wantto lend in renminbi.Offshore channelsFinancial institutions looking for other offshorefunding channels can work with HSBC to raisebilateral and syndicated term loans, certificatesof deposit, notes and funds. After the launch ofthe Hong Kong renminbi repo market in June2012, HSBC can also help financial institutionsborrow renminbi against a variety of collateraloffshore such as government securities,equities and gold held with Euroclear.After Hong Kong, London is the leadingoffshore centre for Dim Sum issuers and after apioneering issue by HSBC in 2012, the market’sprofile and liquidity has been raised by issuesfrom both international and Chinese banks.Financial institutions looking to raise theirprofile in Asia can also raise capital throughrenminbi-denominated IPOs in London andHong Kong with HSBC.Funding onshore and panda marketAs a registered bank on the Chinese mainland,HSBC offers financial institutions fundingonshore with access to loans and arrangementof intercompany domestic loans. Althoughrates are converging, funds raised onshore aregenerally more expensive than offshore andface more extensive regulatory requirementsset by domestic authorities. We providea tailored solution to fit the needs of yourinstitution.17