Hong Kong Rep: Georgia Firms Should Sample 'Dim Sum' Bonds
American firms have long looked to Hong Kong to hedge their risks in China , often using holding companies and favorable tax laws.
But an addition to the city\'s financial repertoire in the past few years has made it an even more appealing gateway to (or buffer from) the mainland.
In 2010, Beijing relaxed restrictions on foreign firms issuing bonds denominated in China\'s currency, the yuan or renminbi, on Hong Kong markets.
These so-called \"dim sum\" bonds can lower the cost of borrowing for operations on the mainland by eliminating exchange fees and allowing companies to hedge against the yuan\'s appreciation versus the dollar, which has been steady this year.
American multinationals like Caterpillar Inc. , Yum! Brands Inc. (the franchiser of KFC and Pizza Hut ) and McDonald\'s Corp.
