Tencent, Baidu Sell Record Dim Sum Bonds for Cheap Funding

Chinese internet firms are raising a record amount of funds in Hong Kong’s dim sum bond market, as they look to secure cheap financing to power their artificial intelligence ambitions.

Tencent Holdings Ltd., which just priced its first bond in four years, and Baidu Inc. have together sold 23.4 billion yuan ($3.3 billion) of offshore yuan bonds this year, the largest tally for the sector ever. Other companies are also sizing up the market, with food delivery company Meituan considering issuing such notes for the first time.

Alibaba Group Holding Ltd., which recently raised about $3.2 billion in ...