Tencent, Baidu Sell Record Dim Sum Bonds for Cheap Funding

Tencent and Baidu, two of China's largest tech companies, have raised a record amount of funds through the sale of dim sum bonds in Hong Kong. Dim sum bonds are yuan-denominated bonds issued outside of mainland China, typically in Hong Kong. The move by these companies comes as they seek to secure cheap financing to fuel their investments in artificial intelligence (AI) technology. The demand for AI-related services and products has surged in recent years, and these tech giants are looking to capitalize on this trend. The record-breaking bond sales underscore the growing appetite for Chinese tech companies' debt among global investors, who are attracted by the potential growth opportunities in the sector. However, the low yields on these bonds also reflect the intense competition for funding in the market. Overall, the dim sum bond sales by Tencent and Baidu highlight the increasing importance of AI and the willingness of Chinese tech firms to tap into international capital markets to finance their ambitious plans.