Some fixed-income analysts have revised down their forecasts for full-year dim sum bond issue volume, saying the rapid growth seen in past years may not be repeated as the market becomes "credit" rather than "currency" dominated.

Net supply of dim sum bonds slowed significantly in the third quarter as liquidity tightness caused costs to climb, Deutsche Bank said in a recent report, trimming its forecast of net issue volume in 2012 by 80 billion yuan to 160 billion.

Total dim sum bond issuance in the first nine months amounted to 112 billion yuan, compared with 121 billion yuan in the same period last year, data compiled by Thomson Reuters showed.

Yuan bonds issued outside China, also known as dim sum bonds, were once seen as "red hot" given that strong yuan appreciation was priced in, allowing much lower coupons than in other markets.

Bloomberg - Reuters