Question (30 marks) Read the following article excerpt Panda take bite out of Hong Kong dim sum bond market'. Pandas take bite out of Hong Kong dim sum bond market Pandas do not hibernate but the dim sum market just might. The rapid opening up of China's enormous onshore bond markets has put the once- vibrant dim sum market renminbi-denominated bonds sold in Hong Kong into the shade. Already this year, $5.6bn of pandas have been sold, more than three times the rate of dim sum bond issuanceHSBC recently slashed its predictions for dim sum issuance this year by at least a third, to between Rmb145bn and Rmbl5Sbn. The situation also partly reflects Bond Connect, a new trading link between Hong Kong and the mainland markets which, since July, allows international investors to trade onshore bonds more easily.... Yet bankers remain reluctant to endorse a full panda-ate-the-dim-sum view, pointing instead to factors behind the Hong Kong market's decline other than simply the growing attraction of mainland opportunities. That could mean that the dim sum market is in a form of hibernation not terminal decline. "Short term, the offshore market may be struggling, but long term there are advantages to having both onshore and offshore renminbi bond markets," said Linan Liu, Greater China macro strategist at Deutsche Bank. "For example, the onshore panda market is bigger but the offshore dim sum market is aligned legally to other investment centres, rating agencies are active and there's established settlement and payment standards." Arguably the biggest factor in the dim sum market's decline has been not Beijing's Panda bond push, but its crackdown on capital outflows