China's onshore bond market recorded a surge in panda bond issuance in May, when 11 foreign entities sold 14 yuan-denominated securities worth 26.64 billion yuan (US$3.7 billion), in a trend that pushed panda issuance to a record level in the first five months of 2026.
Foreign governments, international banks and multinational companies increasingly tapped the mainland market, using panda bonds to raise yuan funding directly from Chinese investors. Panda bonds are yuan-denominated debt instruments issued by foreign entities in mainland China’s onshore market.
FOREIGN ISSUANCE AND MARKET COMPOSITION
The May tally, comprising 14 issues by 11 entities, was up 246 per cent from a year earlier, according to data compiled by Fareast Credit Rating, while issuance in the first five months reached a record 136.5 billion yuan, up 90.3 per cent year on year.
Analysts attributed the trend to Beijing's looser monetary policy, a wider opening of the bond market and the expanding international use of the yuan.
ISSUERS
Issuers in 2026 have included the governments of Pakistan and Kazakhstan, which both made debut sovereign panda bond sales in May, as well as Deutsche Bank, BNP Paribas and Volkswagen.
Sources: SCMP Finance
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