"By combining the historical internationalization roadmaps of other mainstream currencies and considering China's unwavering strategic commitment to manufacturing development, the opening of capital markets through Panda Bonds and Mingzhu Bonds (offshore bonds in free trade zones) can be understood as an important supplement to the international 'availability' of the RMB. Hence, they play a more active role in the internationalization of the RMB."
Terry Zhang
Head of Global Strategy and Business Management, CSPI Ratings
According to data from the international financial information platform DMI, as of July 5, 2024, the issuance of Panda Bonds has reached 108.3 billion yuan for the year. Market participants, including China domestic and foreign Panda Bond underwriters, rating agencies, and issuers, are optimistic that the total issuance for 2024 will not be less than 200 billion yuan.
DMI，CSCI Technology
Report Overview
As a special China domestic category, the issuance scale of Panda Bonds in 2024 is expected to exceed 200 billion yuan, setting a new record for the second consecutive year.
Panda Bonds are RMB-denominated bonds issued by overseas institutions in China. The issuers include four categories: foreign government institutions, international development institutions, foreign financial institutions, and foreign non-financial enterprises. Most Panda Bonds are issued in the interbank bond market, accounting for approximately 93% in 2023, with a few issued in the exchange market.
Against the backdrop of China's bond market surpassing 160 trillion yuan in total scale, although Panda Bonds account for a small proportion, their issuance volume has increased significantly since 2023, and the issuers have become more diversified, attracting recent market attention.
Caixin interviewed Terry Zhang, Head of Global Strategy and Business Management at CSPI Ratings, regarding Panda Bonds and RMB internationalization, and included his insights in the report.
DMI also provided data support for this report.
About CSPI Ratings
CSPI Ratings, headquartered in Hong Kong, is an international credit rating agency. Licensed by the Hong Kong Securities and Futures Commission in 2012, CSPI Ratings combines globally recognized credit analysis with a unique perspective on emerging markets. It provides globally benchmarked credit ratings and original credit research for the global capital market.
As a member of China Securities Credit (CSCI) group, CSPI Ratings is the international brand wholly owned by CSCI Pengyuan, a leading domestic credit rating agency in China.
About DMI
DMI (China Securities Credit Technology Co., Ltd.) is a technology company operating in the fixed-income market. It specializes in providing relevant data and information services related to China’s bond market for overseas clients. Recognizing the challenges faced by RMB assets in overseas markets due to information opacity and liquidity shortages, DMI is committed to addressing information asymmetry between domestic and foreign markets through credit technology.
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