Besides foreign exchange transactions and trade settlement, offshore yuan products also include deposits, loans, bonds and other types of investments.
Since the government expanded the use of yuan in cross-border settlement, exporters and importers can now choose to use the currency for pricing, settlement and payment.
Although a lot of countries have already accepted yuan for trade settlement, there is still plenty of room for growth, said Jiang Lu, a Hong Kong-based economist with JP Morgan Chase & Co.
"With more relevant products available, investors may eventually shift their priority from pure currency appreciation to investment returns.
"That would really help realize the yuan's function as an investment tool, and expand its market," Jiang added.
There are two key drivers of yuan-denominated "dim sum" bond issuance: the lower cost of funds, and the expansion of financing channels.
More than 50 percent of respondents indicated they would use any proceeds from the products to invest in the Chinese mainland market.
Contact the writer at litao@chinadailyhk.com
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