Extra issuers flip to Dubai listings as yuan bonds achieve traction within the Center East

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Extra Chinese language and native issuers may faucet Dubai to record debt and fairness securities, signalling confidence within the Chinese language economic system and the deepening financial hall between China and the Center East, based on the CEO of Dubai Monetary Providers Authority (DFSA).

The momentum would construct on Emirates NBD Financial institution’s current offshore yuan bond of 1 billion yuan (US$143 million), listed on Nasdaq Dubai, marking the lender’s return to the dim sum bond market and enabling world buyers to entry yuan-denominated bonds exterior China, based on a press launch in October.

The deal exemplified “the energy and curiosity within the dim sum bond market exterior Hong Kong, in addition to the curiosity and urge for food in Dubai for China-related merchandise and issuances”, Mark Steward, the highest regulator of the Dubai Worldwide Monetary Centre (DIFC), advised the Publish.

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“There’s a very wholesome demand, and that demand is being realised by an area financial institution,” he stated. “It is symbolic of the rising energy of the financial hall between China and the Center East.”

Steward stated the issuance demonstrated investor confidence within the Chinese language economic system and the exercise surrounding yuan-based funding and funding wants. The 1 billion yuan bond, with a 2.4 per cent coupon maturing in 2028, additionally pointed to a broader diversification away from the US greenback, he added.

The DIFC hosts Chinese language banks which have been lively in monetary companies and commerce financing, particularly these associated to the Belt and Street Initiative. Picture: Shutterstock alt=The DIFC hosts Chinese language banks which have been lively in monetary companies and commerce financing, particularly these associated to the Belt and Street Initiative. Picture: Shutterstock>

Dubai’s debt market was strong although its fairness house was nonetheless catching up with Hong Kong, stated Steward, a former official at Hong Kong’s Securities and Futures Fee (SFC) who assumed his position at DFSA in Might. DFSA regulates Nasdaq Dubai, a monetary change that lists shares, derivatives, Islamic bonds, standard bonds and actual property funding trusts.

Nasdaq Dubai hosted greater than US$145 billion in excellent debt securities as of December, making it one of many world’s main platforms for worldwide fixed-income devices, significantly within the Islamic bond – or sukuk – market.

“We want to see some exercise within the fairness market house,” Steward stated. “We have had some very fascinating conversations with companies which might be popping out right here to Dubai wanting to check the soil. We’re trying ahead to these conversations persevering with.”

Monetary regulators and exchanges in Hong Kong and the Center East have deepened ties to pave the way in which for cross-listings and facilitate capital flows.

In September, SFC and DFSA signed an settlement to strengthen their collaboration on the regulatory oversight of collective funding scheme managers in one another’s markets.

In 2024, the Dubai Monetary Market and the Abu Dhabi Securities Trade joined the record of recognised inventory exchanges by the Hong Kong Exchanges and Clearing, permitting corporations listed on them to use for a secondary itemizing in Hong Kong.

“Monetary centres like Dubai and Hong Kong are the important thing centrepoints of the shortly rising hall between China and the Center East,” stated Steward, pitching DIFC as a particular monetary zone that gives a complicated worldwide regulatory framework that was “comprehensible and understandable” by world market individuals.

DIFC hosts the 5 largest Chinese language banks, which have been lively in monetary companies and commerce financing, particularly these associated to the Belt and Street Initiative, Beijing’s venture geared toward bettering commerce and financial integration throughout Asia, Europe and Africa.

“We see the Belt and Street Initiative flowing via Dubai, investing within the Center East, [and] utilizing the Center East as a hub into Central Asia and Africa,” Steward stated. “All of that’s rising a drumbeat of exercise and curiosity, and is bringing Dubai and Hong Kong nearer collectively.”

This text initially appeared within the South China Morning Publish (SCMP), probably the most authoritative voice reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP app or go to the SCMP’s Fb and Twitter pages. Copyright © 2026 South China Morning Publish Publishers Ltd. All rights reserved.

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